ZoomInfo Faces Class Action Lawsuit for Securities Fraud Following 33% Stock Plunge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: PRnewswire
- Stock Price Plunge: ZoomInfo's stock plummeted by 32.78% on May 11, 2026, dropping from $6.04 to $4.06 per share due to disappointing Q1 results, resulting in significant losses for investors and highlighting serious issues with customer retention.
- Lawsuit Context: A class action lawsuit has been filed by Bleichmar Fonti & Auld LLP against ZoomInfo and its executives, alleging potential violations of federal securities laws, with investors needing to apply by August 24, 2026, to lead the case, indicating increased legal risks.
- Customer Attrition Issues: Despite claims that its AI products were enhancing customer engagement, the reality is that customer acceptance has declined, leading to a regression in customer growth, which directly impacts the company's revenue forecasts.
- Revenue Guidance Cut: ZoomInfo initially projected revenues between $1.247 billion and $1.267 billion in February 2026, but after the earnings announcement, it revised this down to $1.185 billion to $1.205 billion, reflecting pressure in market competition and uncertainty in future growth.
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Current: 2.840
Low
8.00
Averages
12.13
High
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About GTM
ZoomInfo Technologies Inc. provides a go-to-market intelligence and engagement platform for sales, marketing, operations, and recruiting professionals. Its cloud-based platform provides workflow tools with integrated and comprehensive information on organizations and professionals to help users identify target customers and decision makers. Its cloud-based operating system for revenue professionals delivers comprehensive intelligence and analytics to provide sales, marketing, operations, and recruiting professionals accurate information and insights on the organizations and professionals they target. It delivers intelligence at scale by leveraging an AI and ML-powered engine that gathers data from millions of sources and standardizes, matches to entities, verifies, cleans, and applies the processed data to companies and people at scale. The Company aggregates and extracts distinct types of data, such as revenue, locations, technologies, keywords, contact information, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investigation Launched into ZoomInfo Securities Litigation
- Legal Investigation: Faruqi & Faruqi, LLP is investigating potential claims against ZoomInfo Technologies, Inc. after the company sharply lowered its 2026 financial guidance on May 11, 2026, causing a stock price drop of approximately 33% the following day.
- Performance Decline Disclosure: ZoomInfo revealed slowing growth in its legacy subscription platforms and weakening customer retention, failing to inform investors about the risks associated with customers shifting to consumption-based models, which could lead to significant investor losses.
- Restructuring Cost Expectations: The company anticipates incurring restructuring costs between $45 million and $60 million while planning to lay off 20% of its workforce, indicating the urgency and necessity of its response to market challenges.
- Investor Action Call: Faruqi & Faruqi encourages investors who purchased ZoomInfo stock between November 3, 2025, and May 11, 2026, to contact them to discuss their legal rights and potential claims.
See More
Investigation into ZoomInfo Directors' Fiduciary Duties
- Shareholder Rights Investigation: Halper Sadeh LLC is investigating whether certain officers and directors of ZoomInfo Technologies Inc. breached their fiduciary duties, which could impact corporate governance and shareholder rights.
- Legal Fee Arrangement: The firm operates on a contingent fee basis, meaning shareholders are not responsible for legal fees, which reduces the financial burden of participating in the investigation and encourages broader shareholder involvement.
- Importance of Shareholder Participation: Involvement from shareholders can drive improvements in company policies and oversight mechanisms, enhancing transparency and accountability, ultimately leading to increased shareholder value and demonstrating the power of collective action.
- Global Investor Representation: Halper Sadeh LLC represents investors worldwide, focusing on combating securities fraud and corporate misconduct, having successfully implemented corporate reforms and recovered millions for defrauded investors, showcasing their expertise in protecting investor rights.
See More
Class Action Filed Against ZoomInfo for Securities Fraud
- Lawsuit Background: Bronstein, Gewirtz & Grossman LLC has filed a class action lawsuit against ZoomInfo Technologies Inc., alleging violations of federal securities laws from November 3, 2025, to May 11, 2026, seeking to recover losses for investors.
- False Statements: The complaint alleges that ZoomInfo executives made materially false and misleading statements during the class period, failing to disclose the negative impacts of slowing demand and the shift towards consumption-based models on the company's business.
- Performance Decline: On May 11, 2026, ZoomInfo reported its Q1 results and slashed its full-year revenue guidance by approximately $62 million, causing its stock price to plummet from $6.04 per share to $4.06 per share, a decline of about 33%.
- Investor Action: Affected investors have until August 24, 2026, to apply to be lead plaintiffs, with the law firm promising to charge fees only upon successful recovery, thus reducing the financial risk for investors.
See More
ZoomInfo Faces Class Action Lawsuit for Securities Fraud
- Lawsuit Background: ZoomInfo Technologies Inc. is facing a class action lawsuit for securities fraud, alleging that it misled investors about customer retention amid declining performance, resulting in a 33% stock drop on May 12, 2026.
- Stock Price Plunge: Following the Q1 2026 earnings report on May 11, 2026, ZoomInfo slashed its revenue guidance from $1.247-$1.267 billion to $1.185-$1.205 billion, causing its stock price to plummet from $6.04 to $4.06, a decline of 32.78%.
- Legal Consequences: Investors have until August 24, 2026, to apply to lead the case, with the lawsuit pending in the U.S. District Court for the Western District of Washington, alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
- Company Impact: This lawsuit poses significant reputational damage to ZoomInfo, potentially affecting its future financing capabilities and market trust, while exacerbating investor skepticism regarding its AI products.
See More
First Solar and Others Under Shareholder Investigation
- Shareholder Investigation Launched: Grabar Law Office is investigating whether officers and directors of First Solar, Inc. breached their fiduciary duties, affecting shareholders who purchased shares before February 26, 2025, potentially exposing the company to legal and financial risks.
- False Statement Allegations: A recently filed securities fraud class action alleges that First Solar's executives overstated the company's ability to manage U.S. tariff impacts and failed to disclose the negative effects of underutilized production facilities on projected performance for fiscal year 2026, risking shareholder losses.
- Hub Group Faces Similar Issues: Hub Group, Inc. is also under investigation by Grabar Law Office for alleged material misstatements in financial statements from Q1 2023 to Q4 2024, which could undermine financial transparency and investor confidence.
- Navan and ZoomInfo Investigations: Navan, Inc. and ZoomInfo Technologies, Inc. are similarly facing shareholder investigations regarding whether executives failed to disclose critical information affecting company performance, potentially leading shareholders to seek governance reforms to protect their interests.
See More
ZoomInfo Faces Class Action Lawsuit for Securities Fraud
- Lawsuit Background: Bronstein, Gewirtz & Grossman LLC has filed a class action lawsuit against ZoomInfo Technologies Inc., alleging violations of federal securities laws on behalf of all investors who purchased ZoomInfo securities between November 3, 2025, and May 11, 2026.
- False Statements Allegations: The complaint claims that ZoomInfo executives made materially false and misleading statements during the class period, failing to disclose critical information regarding slowing demand, weakening upsell opportunities, and deteriorating fundamentals, which prevented investors from making informed decisions.
- Performance Decline Impact: On May 11, 2026, ZoomInfo reported its first-quarter results and slashed its full-year revenue guidance by approximately $62 million, causing its stock price to plummet from $6.04 to $4.06 per share, a decline of about 33%, significantly undermining investor confidence.
- Investor Action Recommendations: Affected investors have until August 24, 2026, to request to be appointed as lead plaintiff, with Bronstein, Gewirtz & Grossman LLC offering to represent investors on a contingency fee basis, ensuring that investor rights are restored upon successful recovery.
See More
Investigation Launched into ZoomInfo Securities Litigation
- Legal Investigation: Faruqi & Faruqi, LLP is investigating potential claims against ZoomInfo Technologies, Inc. after the company sharply lowered its 2026 financial guidance on May 11, 2026, causing a stock price drop of approximately 33% the following day.
- Performance Decline Disclosure: ZoomInfo revealed slowing growth in its legacy subscription platforms and weakening customer retention, failing to inform investors about the risks associated with customers shifting to consumption-based models, which could lead to significant investor losses.
- Restructuring Cost Expectations: The company anticipates incurring restructuring costs between $45 million and $60 million while planning to lay off 20% of its workforce, indicating the urgency and necessity of its response to market challenges.
- Investor Action Call: Faruqi & Faruqi encourages investors who purchased ZoomInfo stock between November 3, 2025, and May 11, 2026, to contact them to discuss their legal rights and potential claims.
See More
Investigation into ZoomInfo Directors' Fiduciary Duties
- Shareholder Rights Investigation: Halper Sadeh LLC is investigating whether certain officers and directors of ZoomInfo Technologies Inc. breached their fiduciary duties, which could impact corporate governance and shareholder rights.
- Legal Fee Arrangement: The firm operates on a contingent fee basis, meaning shareholders are not responsible for legal fees, which reduces the financial burden of participating in the investigation and encourages broader shareholder involvement.
- Importance of Shareholder Participation: Involvement from shareholders can drive improvements in company policies and oversight mechanisms, enhancing transparency and accountability, ultimately leading to increased shareholder value and demonstrating the power of collective action.
- Global Investor Representation: Halper Sadeh LLC represents investors worldwide, focusing on combating securities fraud and corporate misconduct, having successfully implemented corporate reforms and recovered millions for defrauded investors, showcasing their expertise in protecting investor rights.
See More
Class Action Filed Against ZoomInfo for Securities Fraud
- Lawsuit Background: Bronstein, Gewirtz & Grossman LLC has filed a class action lawsuit against ZoomInfo Technologies Inc., alleging violations of federal securities laws from November 3, 2025, to May 11, 2026, seeking to recover losses for investors.
- False Statements: The complaint alleges that ZoomInfo executives made materially false and misleading statements during the class period, failing to disclose the negative impacts of slowing demand and the shift towards consumption-based models on the company's business.
- Performance Decline: On May 11, 2026, ZoomInfo reported its Q1 results and slashed its full-year revenue guidance by approximately $62 million, causing its stock price to plummet from $6.04 per share to $4.06 per share, a decline of about 33%.
- Investor Action: Affected investors have until August 24, 2026, to apply to be lead plaintiffs, with the law firm promising to charge fees only upon successful recovery, thus reducing the financial risk for investors.
See More
ZoomInfo Faces Class Action Lawsuit for Securities Fraud
- Lawsuit Background: ZoomInfo Technologies Inc. is facing a class action lawsuit for securities fraud, alleging that it misled investors about customer retention amid declining performance, resulting in a 33% stock drop on May 12, 2026.
- Stock Price Plunge: Following the Q1 2026 earnings report on May 11, 2026, ZoomInfo slashed its revenue guidance from $1.247-$1.267 billion to $1.185-$1.205 billion, causing its stock price to plummet from $6.04 to $4.06, a decline of 32.78%.
- Legal Consequences: Investors have until August 24, 2026, to apply to lead the case, with the lawsuit pending in the U.S. District Court for the Western District of Washington, alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
- Company Impact: This lawsuit poses significant reputational damage to ZoomInfo, potentially affecting its future financing capabilities and market trust, while exacerbating investor skepticism regarding its AI products.
See More
First Solar and Others Under Shareholder Investigation
- Shareholder Investigation Launched: Grabar Law Office is investigating whether officers and directors of First Solar, Inc. breached their fiduciary duties, affecting shareholders who purchased shares before February 26, 2025, potentially exposing the company to legal and financial risks.
- False Statement Allegations: A recently filed securities fraud class action alleges that First Solar's executives overstated the company's ability to manage U.S. tariff impacts and failed to disclose the negative effects of underutilized production facilities on projected performance for fiscal year 2026, risking shareholder losses.
- Hub Group Faces Similar Issues: Hub Group, Inc. is also under investigation by Grabar Law Office for alleged material misstatements in financial statements from Q1 2023 to Q4 2024, which could undermine financial transparency and investor confidence.
- Navan and ZoomInfo Investigations: Navan, Inc. and ZoomInfo Technologies, Inc. are similarly facing shareholder investigations regarding whether executives failed to disclose critical information affecting company performance, potentially leading shareholders to seek governance reforms to protect their interests.
See More
ZoomInfo Faces Class Action Lawsuit for Securities Fraud
- Lawsuit Background: Bronstein, Gewirtz & Grossman LLC has filed a class action lawsuit against ZoomInfo Technologies Inc., alleging violations of federal securities laws on behalf of all investors who purchased ZoomInfo securities between November 3, 2025, and May 11, 2026.
- False Statements Allegations: The complaint claims that ZoomInfo executives made materially false and misleading statements during the class period, failing to disclose critical information regarding slowing demand, weakening upsell opportunities, and deteriorating fundamentals, which prevented investors from making informed decisions.
- Performance Decline Impact: On May 11, 2026, ZoomInfo reported its first-quarter results and slashed its full-year revenue guidance by approximately $62 million, causing its stock price to plummet from $6.04 to $4.06 per share, a decline of about 33%, significantly undermining investor confidence.
- Investor Action Recommendations: Affected investors have until August 24, 2026, to request to be appointed as lead plaintiff, with Bronstein, Gewirtz & Grossman LLC offering to represent investors on a contingency fee basis, ensuring that investor rights are restored upon successful recovery.
See More
