ZoomInfo Technologies (ZI) Financial Issues Case

• $ZI stockholders filed a claim against ZoomInfo for hiding that COVID-19 temporarily boosted their finances.

• After the financial results on November 1, 2022, $ZI dropped by over 29%.

• ZoomInfo investors can join this case to be notified about potential recovery.

Case Details:

On November 1, 2022, ZoomInfo reported that customer pushback during contract renewals negatively affected its quarterly results. On this news, $ZI fell by over 29%.

Then, on November 16, 2022, ZoomInfo warned that customer pushback would slow revenue growth in 2023.

After that, on July 31, 2023, ZoomInfo also reported a drop in large clients and cut its annual revenue forecast by $50M, causing $ZI dropped by 28%.

Finally, on August 5, 2024, ZoomInfo announced a $33 million loss from unpaid bills, changed its payment terms for small businesses, and lowered its revenue forecast by $65 million.

After this news, $ZI fell more than 18%.

Based on these events, $ZI investors filed a claim against ZoomInfo, accusing the company of the following:

• ZoomInfo's financial results were temporarily boosted by the COVID-19 pandemic, which increased demand for their contact database.

• Moreover, aggressive tactics like auto-renewal policies and legal threats damaged customer relationships.

Considering all the representations, investors suspect ZoomInfo hid the fact that COVID-19 temporarily boosted their financials by increasing demand for their database.