#USA #New York #Levi & Korsinsky #Securities Fraud #ZoomInfo Technologies

ZoomInfo Technologies Faces Potential Securities Fraud Investigation

In a recent shocking turn of events, ZoomInfo Technologies Inc. (NASDAQ: GTM) has been the focus of an investigation by Levi & Korsinsky, LLP following a significant drop in its stock value. The company recently revised its revenue projections for the fiscal year 2026, causing a stock price plunge of over 33% shortly after the market opened. This drop has left many investors concerned and questioning their investments.

Overview of the Issue

Initially, ZoomInfo had projected revenue for FY 2026 to be between $1.247 billion and $1.267 billion. However, in a surprising announcement, this figure was slashed to a lower range of $1.185 billion to $1.205 billion—a decrease of up to $62 million. This drastic revision was disclosed alongside the company’s Q1 2026 earnings report, where it did beat analysts’ expectations with a quarterly revenue of $310.2 million, surpassing the anticipated $306 million to $309 million range. Nevertheless, the negative outlook overshadowed any positive news, leading to swift reactions from analysts and investors alike.

Following the announcement, several brokerage firms swiftly adjusted their ratings on ZoomInfo’s stock, moving from 'Buy' to 'Hold'. This sudden erosion of investor confidence was a wake-up call, reflecting broader concerns over the company's financial integrity.

Background of the Company

ZoomInfo Technologies has characterized its growth trajectory as “positive” in previous communications, including statements made by CFO Graham O'Brien during the Q4 2025 earnings call. Investors were told repeatedly that results were consistently exceeding guidance, leading many to feel blindsided by the recent downturn. This shift in outlook raises significant questions about the predictions made by the company and the reliability of their earlier statements.

The Investigation Process

Levi & Korsinsky is urging affected shareholders to come forward to discuss their legal options. Any investor who purchased shares of ZoomInfo Technologies and suffered financial losses due to this recent decline may have the grounds for a claim. The firm notes that eligibility hinges not on whether the shares are still held but on the documented losses incurred based on the purchase date and share prices.

Investors facing questions about their legal standing can gather pertinent brokerage records, including purchase dates and the volume of shares bought at different prices. This documentation will be vital in assessing the potential for recovery of losses.

Frequently Asked Questions

Who is eligible for the investigation?

Investors who purchased GTM shares and experienced financial losses may be eligible. It's important to note that participation is based on documented losses, not whether the shares are still owned.

How much did the stock decline?

The stock experienced a significant drop of approximately 33% right after the revenue guidance was cut, raising alarms among shareholders.

What statements are under investigation?

The investigation focuses on whether ZoomInfo made materially false or misleading statements regarding its revenue projections which could have misled investors prior to the stock’s decline.

What should affected investors do?

Affected investors should gather and organize their brokerage records. They can then reach out to Levi & Korsinsky for a no-cost evaluation of their situation.

What costs are involved to participate?

There are no upfront costs to participate in the investigation. The firm operates on a contingency basis, meaning investors will not incur any costs unless there is a recovery.

Is appearing in court necessary?

No, participating in the investigation does not require appearances in court.

Conclusion

As the investigation unfolds, affected shareholders of ZoomInfo Technologies are encouraged to remain informed and proactive about their rights. With the securities market constantly evolving, understanding the implications of such drastic shifts can be critical for investors aiming to safeguard their portfolios. Levi & Korsinsky remains committed to representing shareholders as they navigate these tumultuous waters. For more information or to discuss your case, investors can contact Joseph E. Levi at [email protected] or via phone at (212) 363-7500.