ZoomInfo Class Action Lawsuit: The Paramountly Authenticated Investor Playbook

INTRODUCTION TO THE ZoomInfo CLASS ACTION LAWSUIT

Call Timothy L. Miles today for a free case evaluation in the ZoomInfo class action lawsuit

A class action lawsuit has been filed seeking to represent purchasers of ZoomInfo Technologies, Inc. (NASDAQ: ZI) Class A common stock between November 10, 2020 and August 5, 2024, inclusive (the “Class Period”).  Captioned City of Pontiac Police and Fire Retirement System v. ZoomInfo Technologies, Inc., No. 24-cv-05739 (W.D. Wash.), the ZoomInfo class action lawsuit charges ZoomInfo and certain of ZoomInfo’s top executive officers and others with violations of the Securities Exchange Act of 1934. 
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If you have suffered losses in ZoomInfo stock and are interested in becoming the lead plaintiff in the ZoomInfo class action lawsuit or have any inquiries regarding your rights as a shareholder, please reach out to ZoomInfo Stock Loss Lawyer Timothy L. Miles at no cost.  You can contact him by calling 855/846-6529, sending an e-mail to [email protected], or filling out a contact form. 

Lead plaintiff motions for the ZoomInfo class action lawsuit must be filed with the court no later than November 4, 2024.

allegations in the ZoomInfo class action lawsuit

​​ZoomInfo is a software and data company that provides customer contact and business information to its clients.  The ZoomInfo class action lawsuit can be summarized: 

1. Core Allegations:

The lawsuit claims that ZoomInfo’s success was temporarily inclients with customer contact and business informationflated by the COVID-19 pandemic, which increased demand for their digital contact information database. However, this surge was short-lived, and the company allegedly concealed that significant portions of their customer base were attempting to reduce usage or abandon the service entirely.
      2. Coercive Practices:
ZoomInfo is accused of employing manipulative and coercive auto-renewal policies. The company allegedly threatened litigation to force customers into renewing contracts, even when these clients wished to discontinue the service. These tactics reportedly damaged customer relationships, the client franchise, and ZoomInfo’s competitive advantages.
     3. Hidden Demand Cliff:
The lawsuit asserts that ZoomInfo’s aggressive retention tactics created a hidden demand cliff for future customer contract renewals. This allegedly led to materially overstated revenues, operating income, and customer retention metrics.
• November 1, 2022 – Financial Results and Stock Impact: ZoomInfo announced its Q3 2022 financial results, revealing increased “scrutiny” by customers during contract renewals. This negatively impacted financial results and caused a “retrace” in Net Revenue Retention (NRR). The company’s stock price fell more than 29% following this news.
• November 16, 2022 – Continued Customer Scrutiny: ZoomInfo disclosed that intense customer scrutiny during contract renewals had persisted into Q4, affecting revenue growth projections for fiscal year 2023. This announcement led to an approximate 17% drop in ZoomInfo’s Class A common stock price over two trading sessions.
• July 31, 2023 – Q2 2023 Results and Guidance Reduction: ZoomInfo reported a decline in high-value customers (those with annual contract values of $100,000 or greater) from 1,905 to 1,893. The company also reduced its annual revenue guidance by $50 million at the mid-point, causing the stock price to fall approximately 28% over two trading sessions.
• May 7, 2024 – Q1 2024 Results and Further Decline: ZoomInfo disclosed weakness in its small business customer segment during renewals, with Net Revenue Retention declining to 85% from 87% in the previous quarter. The company further reduced its annual revenue guidance, resulting in a stock price drop of more than 24%.
• August 5, 2024 – Q2 2024 Results and New Business Model: ZoomInfo announced a $33 million charge due to customer non-payments and the implementation of a “new business risk model” to reduce write-offs. The company altered its operational procedures to require up-front payments from small business customers, indicating affordability issues. ZoomInfo further reduced its annual revenue guidance by $65 million at the midpoint, leading to an 18% decline in stock price.

THE LEAD PLAINTIFF DEADLINE IN THE ZoomInfo class action lawsuit

​Lead plaintiff motions for the ZoomInfo class action lawsuit must be filed with the court no later than November 4, 2024.​
When a securities class action is filed such as the ZoomInfo class action lawsuit:

1. The person who files the first complaint is required to publish a notice announcing the filing.
2. Anyone who wants to be lead plaintiff on behalf of the class must thereafter file a motion to be appointed as lead plaintiff(s) no later than 60 days after the notice was published. 

YOU HAVE TWO CHOICES IF YOU RECEIVE A NOTICE IN THE ZoomInfo CLASS ACTION LAWSUIT

​First, read the notice very carefully.  You have two choices. 

• First, you can do nothing and remain a member of the class represented by lead counsel. 
• Second, if you believe you have a large enough loss to justify it, you can opt out of the ZoomInfo class action lawsuit and file your own separate lawsuit.

​Note, that if you opt-out, you will not be able to participate in any settlement or recovery obtained in the ZoomInfo class action lawsuit. ​

THE LEAD PLAINTIFF PROCESS IN THE ZoomInfo CLASS ACTION LAWSUIT

​The Private Securities Litigation Reform Act of 1995 (PSLRA) permits any investor who purchased and suffered losses in ZoomInfo​​​ stock to seek appointment as lead plaintiff in the ZoomInfo class action lawsuit.

• A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. 
• A lead plaintiff acts on behalf of all other class members in directing the class action lawsuit.
• The lead plaintiff can select a law firm of its choice to litigate the securities class action lawsuit. 
• An investor’s ability to share in any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff. 

THE BENEFITS OF SERVING AS A LEAD PLAINTIFF IN THE ZoomInfo CLASS ACTION LAWSUIT

1. Negotiating more competitive attorney fees and reducing litigation costs.
2. Managing the litigation by overseeing the progress of the case and reviewing important filings.
3. Participating in mediation and settlement discussions.
4. Having a voice in decision-making processes regarding the settlement.
5. No financial risk, as lead counsel covers all costs and expenses and are paid only if they secure a  settlement or judgment recovery for the class
6. Potentially enjoying long-term benefits from governance reform resulting from the litigation.

THE RESPONSIBILITIES THE LEAD PLAINTIFF WILL HAVE IN THE ZoomInfo CLASS ACTION LAWSUIT

1. ​Negotiating more competitive attorney fees and reducing litigation costs.
2. Managing the litigation by overseeing the progress of the case and reviewing important filings.
3. Participating in mediation and settlement discussions.
4. Having a voice in decision-making processes regarding the settlement.
5. No financial risk, as lead counsel covers all costs and expenses and are paid only if they secure a  settlement or judgment recovery for the class
6. Potentially enjoying long-term benefits from governance reform resulting from the litigation.

ELIGIBILITY CRITERIA FOR LEAD PLAINTIFF APPOINTMENT

​To be eligible for appointment as the lead plaintiff in the ZoomInfo class action lawsuit, an investor must meet the following criteria:

1. Securities Acquisition: The investor must have purchased or acquired ZoomInfo​ Class A​ common stock during the Class Period, spanning November 10, 2020, and August 5, 2024.
2. Financial Losses: The investor must have suffered financial losses as a direct result of the alleged securities fraud perpetrated by ZoomInfo​​ and its executives.
3. Typicality and Adequacy: The investor’s legal claims must be typical of those asserted on behalf of the class, and they must demonstrate their ability to adequately represent the interests of the entire class through experience, resources, and the absence of conflicts of interest.

It is crucial to note that both domestic and international investors who meet these criteria are eligible to seek appointment as the lead plaintiff in the ZoomInfo class action lawsuit, as courts have consistently recognized the rights of non-U.S. investors in securities class actions.

STAGES OF THE ZoomInfo CLASS ACTION LAWSUIT

1. Consolidation and Lead Plaintiff Appointment
2. Filing of Consolidated Complaint
3. Motion to Dismiss
4. Class Certification
5. Discovery
6. Settlement Negotiations and Mediation
7. Summary Judgment Motions
8. Trial
9. Appeals