Kahn Swick & Foti Launches Investigation into ZoomInfo Technologies Amid Financial Concerns
In a significant move, the law firm Kahn Swick & Foti, LLC, led by former Louisiana Attorney General Charles C. Foti, Jr., has begun an investigation into ZoomInfo Technologies, Inc., a company publicly traded on the Nasdaq stock exchange under the symbol GTM. The inquiry was prompted by troubling revelations regarding the company's financial health and operational changes that raised questions about its governance and fiduciary duties to shareholders.
The investigation comes on the heels of ZoomInfo's announcement on August 5, 2024, concerning its financial results for the second quarter of 2024. The company reported a staggering $33 million charge attributed to non-payments from customers, a sign that many of its clients were struggling to pay for services. In response, ZoomInfo implemented a new business risk model that requires upfront payments from its small business customers. This change not only reflects the company's need to mitigate financial risk but also suggests that many customers were unable to afford its products, raising concerns about the sustainability of its business model.
Compounding these issues, ZoomInfo subsequently lowered its annual revenue guidance by $65 million, reducing its forecast from a range of $1.255 billion to $1.27 billion down to between $1.19 billion and $1.205 billion. Such a dramatic revision indicates significant operational challenges and may suggest deeper financial instability.
Following these developments, ZoomInfo and its executives found themselves embroiled in a securities class action lawsuit. The lawsuit alleges that they failed to disclose material information to investors, in violation of federal securities laws. Recently, a court decided to deny the company's motion to dismiss in part, allowing the case to progress, which raises questions about the conduct and governance of the company's leadership.
Kahn Swick & Foti's investigation specifically seeks to determine whether ZoomInfo's officers and directors have violated their fiduciary responsibilities to the shareholders. This inquiry is critical as shareholders deserve transparency regarding the company's management practices and potential liabilities stemming from the ongoing legal disputes.
For individuals holding ZoomInfo shares, especially those who have been long-term investors, KSF encourages them to come forward with any information that could assist in the investigation. The firm offers a confidential means for stakeholders to voice their concerns; interested parties can call toll-free at 1-833-938-0905 or reach out via email to KSF Managing Partner Lewis Kahn at [email protected]. For additional details, stakeholders can also visit KSF's dedicated page regarding the case at https://www.ksfcounsel.com/cases/nasdaqgs-gtm/.
Kahn Swick & Foti, LLC is recognized as one of the leading boutique law firms specializing in securities litigation. With a reputation for fighting for the rights of investors, KSF has been ranked among the top 10 firms nationally based on total settlement values. The firm represents various clients, including institutional and retail investors, seeking recovery for losses due to corporate misconduct.
KSF operates out of multiple locations, including New York, Delaware, California, and Louisiana, and is committed to advocating for those affected by corporate fraud. This investigation into ZoomInfo is another step in their ongoing effort to hold corporate leaders accountable for their actions and ensure that all investors are treated fairly.
As the investigation unfolds, stakeholders are encouraged to stay informed and consider their legal options. With the increasing importance of corporate governance and transparency, this case could have far-reaching implications for not only ZoomInfo but also for the broader landscape of public corporations navigating similar financial challenges.
The investigation comes on the heels of ZoomInfo's announcement on August 5, 2024, concerning its financial results for the second quarter of 2024. The company reported a staggering $33 million charge attributed to non-payments from customers, a sign that many of its clients were struggling to pay for services. In response, ZoomInfo implemented a new business risk model that requires upfront payments from its small business customers. This change not only reflects the company's need to mitigate financial risk but also suggests that many customers were unable to afford its products, raising concerns about the sustainability of its business model.
Compounding these issues, ZoomInfo subsequently lowered its annual revenue guidance by $65 million, reducing its forecast from a range of $1.255 billion to $1.27 billion down to between $1.19 billion and $1.205 billion. Such a dramatic revision indicates significant operational challenges and may suggest deeper financial instability.
Following these developments, ZoomInfo and its executives found themselves embroiled in a securities class action lawsuit. The lawsuit alleges that they failed to disclose material information to investors, in violation of federal securities laws. Recently, a court decided to deny the company's motion to dismiss in part, allowing the case to progress, which raises questions about the conduct and governance of the company's leadership.
Kahn Swick & Foti's investigation specifically seeks to determine whether ZoomInfo's officers and directors have violated their fiduciary responsibilities to the shareholders. This inquiry is critical as shareholders deserve transparency regarding the company's management practices and potential liabilities stemming from the ongoing legal disputes.
For individuals holding ZoomInfo shares, especially those who have been long-term investors, KSF encourages them to come forward with any information that could assist in the investigation. The firm offers a confidential means for stakeholders to voice their concerns; interested parties can call toll-free at 1-833-938-0905 or reach out via email to KSF Managing Partner Lewis Kahn at [email protected]. For additional details, stakeholders can also visit KSF's dedicated page regarding the case at https://www.ksfcounsel.com/cases/nasdaqgs-gtm/.
Kahn Swick & Foti, LLC is recognized as one of the leading boutique law firms specializing in securities litigation. With a reputation for fighting for the rights of investors, KSF has been ranked among the top 10 firms nationally based on total settlement values. The firm represents various clients, including institutional and retail investors, seeking recovery for losses due to corporate misconduct.
KSF operates out of multiple locations, including New York, Delaware, California, and Louisiana, and is committed to advocating for those affected by corporate fraud. This investigation into ZoomInfo is another step in their ongoing effort to hold corporate leaders accountable for their actions and ensure that all investors are treated fairly.
As the investigation unfolds, stakeholders are encouraged to stay informed and consider their legal options. With the increasing importance of corporate governance and transparency, this case could have far-reaching implications for not only ZoomInfo but also for the broader landscape of public corporations navigating similar financial challenges.
Topics General Business）
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