(NewMediaWire) - September 28, 2024 - 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 pmayer@kaplanfox.com or by calling (646) 315-9003.
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 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, the Defendants “
(i) deceive[d] the investing public; (ii) artificially inflate[d] and maintain[ed] the market price of New Forress common stock; and (iii) caus[ing] Plaintiff and other members of the Class to purchase or otherwise acquire New Fortress’ securities at artificially inflated prices.
“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.”
WHY CONTACT KAPLAN FOX - Kaplan Fox is a leading national law firm focusing on complex litigation with offices in New York, Oakland, Los Angeles, Chicago and New Jersey. With over 50 years of experience in securities litigation, Kaplan Fox offers the professional experience and track record that clients demand. Through prosecuting cases on the federal and state levels, Kaplan Fox has successfully shaped the law through winning many important decisions on behalf of our clients. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.
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If you have any questions about this Notice, your rights, or your interests, please contact:
CONTACT:
Pamela A. Mayer
KAPLAN FOX & KILSHEIMER LLP
800 Third Avenue, 38th Floor
New York, New York 10022
(646) 315-9003
pmayer@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
lking@kaplanfox.com
