Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against ZoomInfo Technologies Inc. (“ZoomInfo” or the “Company”) (NASDAQ: ZI) securities between November 10, 2020 and August 5, 2024 (the “Class Period”).
If you are an investor in ZoomInfo and have suffered losses, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing [email protected] or by calling (646) 315-9003.
DEADLINE REMINDER: If you are a member of the proposed Class, you may move the court no later than November 4, 2024 to serve as a lead plaintiff for the purported class. If you have losses we encourage you to contact us to learn more about the lead plaintiff process.
On August 5, 2024, after the market closed, ZoomInfo released financial results for the second quarter of 2024 missing its revenue and earnings guidance. Further, the Company disclosed that it “revised [its] estimates for the collectability of a portion of previously recognized revenue,” which led ZoomInfo to take a $33 million charge in the quarter. Additionally, ZoomInfo’s Chief Financial Officer stated during the Company’s conference call that “[t]his change in estimates, combined with other discrete charges, resulted in a total $33 million charge in Q2, of which $15 million reduced revenue, $14 million increased our bad debt expense and $4 million increased other expenses” and that “[t]he change in estimates relates to previously recognized revenue, primarily from 2023.”
On this news, the price of ZoomInfo shares fell $1.79 per share, over 18%, from a close price of $9.80 per share on August 5, 2024 to close at $8.01 on August 6, 2024.
The complaint alleges, among other things, that throughout the Class Period “ZoomInfo’s reported accounts receivable were materially comprised of debts owed by high-risk small business customers that had a high likelihood of nonpayment” and that “ZoomInfo’s allowance for credit losses was materially inadequate and understated the risk of non-payments by the Company’s customers.”
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