StockNews.AI

ZoomInfo Investigation Initiated: Kahn Swick & Foti, LLC Investigates the Officers and Directors of ZoomInfo Technologies, Inc. - GTM, ZI

StockNews.AI • 18 hours

ZMCRMMDB
High Materiality8/10

Information

NEW YORK and NEW ORLEANS, Jan. 20, 2026 /PRNewswire/ -- Former Attorney General of Louisiana, Charle...

Original source

AI Summary

ZoomInfo Technologies is under investigation for potential fiduciary breaches following significant financial losses and altered revenue guidance. The company's move to a new risk model has raised concerns among investors, which may lead to legal repercussions and impact stock performance.

Sentiment Rationale

Legal investigations and poor financial results could lead to a major decline in stock price, similar to past cases of governance failures resulting in share depreciation.

Trading Thesis

Bearish sentiment towards GTM is expected in the near term due to heightened legal risks and disappointing financial performance.

Market-Moving

  • Upcoming court decisions may further affect investor sentiment toward GTM.
  • Continued revenue decline could lead to further analyst downgrades.
  • Increased legal scrutiny can dampen investor confidence in GTM’s operations.
  • Changes in payment policies may alienate small business customers, negatively impacting sales.

Key Facts

  • ZoomInfo faces an investigation by KSF over fiduciary duty breaches.
  • 2Q2024 results revealed a $33 million charge from customer non-payments.
  • Revenue guidance was reduced by $65 million at the midpoint.
  • The court denied ZoomInfo's motion to dismiss in a securities lawsuit.
  • Small business customers now required to make upfront payments.

Companies Mentioned

  • ZoomInfo Technologies, Inc. (GTM): Facing legal scrutiny and reduced revenue guidance due to financial struggles.

Corporate Developments

The category is significant as it relates to Corporate Developments and ongoing legal issues affecting financial performance. The environment is unpredictable, and legal outcomes could substantially impact investor sentiment and market valuation for GTM.

Investigation Launched into ZoomInfo Technologies, Inc. by Kahn Swick & Foti, LLC

Former Louisiana Attorney General Charles C. Foti, Jr., Esq., along with his team at Kahn Swick & Foti, LLC ("KSF"), has announced the initiation of an investigation into ZoomInfo Technologies, Inc. (NasdaqGS: GTM). This development comes in light of the financial difficulties the company disclosed on August 5, 2024.

Financial Results and Impacts on ZoomInfo (GTM)

In its recent financial disclosure for the second quarter of 2024, ZoomInfo revealed it faced a substantial $33 million charge resulting from customer non-payment issues. This revelation prompted the company to adopt a new business risk model aimed at reducing write-offs. The new model entails adjustments to operational procedures, necessitating upfront payments from small business customers, indicating financial strain among its previous clientele.

Furthermore, ZoomInfo revised its annual revenue guidance downward by $65 million, adjusting the expected range from $1.255 billion to $1.27 billion to a new forecast of $1.19 billion to $1.205 billion. This significant reduction suggests ongoing challenges in achieving projected revenues.

Legal Proceedings and Allegations

Following these financial disclosures, ZoomInfo, alongside several executives, is now facing a securities class action lawsuit. The lawsuit alleges that they failed to disclose crucial information, thereby violating federal securities laws. Recently, the court overseeing this matter has denied the company's motion to dismiss part of the case, allowing the legal proceedings to advance.

KSF's investigation will focus on whether the officers and directors of ZoomInfo (GTM) have breached their fiduciary duties to shareholders or contravened state and federal regulations.

Call to Action for Shareholders

If you have information pertinent to KSF's investigation or have been a long-term holder of ZoomInfo shares, you are encouraged to discuss your legal rights without any obligation. Interested parties may reach out by calling toll-free at 1-833-938-0905 or email KSF Managing Partner Lewis Kahn at contact@ksfcounsel.com. More details can also be found by visiting KSF's official webpage.

About Kahn Swick & Foti, LLC

Founded by Charles C. Foti, Jr., KSF is recognized as one of the premier boutique securities litigation law firms in the United States. Recently, KSF was ranked among the top 10 plaintiff law firms nationally by SCAS, based on total settlement value. The firm is dedicated to helping clients—including public and private institutional and retail investors—recover losses incurred due to corporate fraud or misconduct by publicly traded companies.

With offices located in New York, Delaware, California, Louisiana, Chicago, and a representative office in Luxembourg, KSF is well-positioned to assist a diverse range of clients seeking justice and recovery.

For further inquiries, please contact:
Kahn Swick & Foti, LLC
Lewis Kahn, Managing Partner
contact@ksfcounsel.com
Phone: 1-877-515-1850
1100 Poydras St., Suite 960, New Orleans, LA 70163

Connect with KSF on social media: Facebook || Instagram || YouTube || TikTok || LinkedIn

Related News