A securities class action has been filed against ZoomInfo Technologies Inc. alleging the company misled investors about slowing growth in its legacy subscription platforms. The stock fell 33% on May 12 after the company slashed guidance and announced 20% layoffs. Investors have until Aug. 24 to seek lead plaintiff status.
A securities class action alleges ZoomInfo misled investors about slowing growth in its legacy subscription platforms, according to a court filing.
"Defendants made materially false and misleading statements while concealing the true extent of ZoomInfo's slowing seat-based demand and deteriorating fundamentals," the complaint states. The lawsuit was filed in the US District Court for the Western District of Washington.
The class period covers investors who purchased ZoomInfo (NASDAQ: GTM) securities between Nov. 3, 2025 and May 11, 2026. On May 11 after the market closed, ZoomInfo reported first-quarter 2026 results and cut its full-year revenue guidance by about $62 million, to a range of $1.247 billion to $1.267 billion. The company also announced a 20% workforce reduction and expected restructuring costs of $45 million to $60 million. Shares fell 33% the next day, closing at $4.06 from $6.04.
The lawsuit alleges ZoomInfo minimized concerns that customers were shifting toward consumption-based usage models and developing internal AI-driven go-to-market solutions, trends that materially eroded the company's subscription-based revenue. Multiple law firms including Faruqi & Faruqi, Bronstein Gewirtz & Grossman, Bernstein Liebhard, and Levi & Korsinsky are investigating potential claims.
Investors have until Aug. 24, 2026 to seek appointment as lead plaintiff. The 33% single-day decline erased more than $1 billion in market value, marking ZoomInfo's steepest drop since its 2020 IPO. The Aug. 24 lead plaintiff deadline will determine which investor group directs the litigation, with potential settlement costs representing a material financial overhang for the company.
This article is for informational purposes only and does not constitute investment advice.
