#USA #New York #Levi & Korsinsky #Securities Class Action #ZoomInfo Technologies

Investigation into ZoomInfo Technologies Amid Class Action Lawsuit

In a recent development within the financial industry, Levi & Korsinsky, LLP has notified investors of a potential class action lawsuit against ZoomInfo Technologies, Inc. (NASDAQ: GTM). This lawsuit comes in light of substantial shareholder losses following a concerning decline in the company’s stock prices and growth projections.

Background of the Case

On May 11, 2026, shares of ZoomInfo experienced a dramatic drop of 33%, decreasing by $1.98 per share after the company revealed a significant downturn in their growth outlook for 2026. This revelation raised alarms among investors, leading to the filing of the class action lawsuit that spans purchases made between November 3, 2025, and May 11, 2026.

The lawsuit names Henry Schuck, CEO and Chairman of the Board, as well as M. Graham O'Brien, the Chief Financial Officer, as individual defendants due to their roles during this class period. Both executives are alleged to have significant control over the company’s operations and reporting processes, and are now facing accusations that they either knew or should have known that negative factors were not disclosed to investors prior to the steep decline in stock value.

Legal Grounds for the Lawsuit

The basis of this class action primarily hinges on Section 20(a) of the Securities Exchange Act of 1934, which places liability on individuals who control entities that violate section 10(b) relating to providing materially false or misleading information. The complaint details how Schuck and O'Brien oversaw critical disclosures and communications with investors, asserting that they misrepresented the company’s financial health while knowing about the adverse trends in their subscription model.

In addition to claims about misrepresentations, the lawsuit accuses both executives of failing to adequately disclose that the legacy seat-based subscription service was declining, while customers were rapidly shifting to consumption-based models. This shift indicates significant underlying issues within the company that were allegedly not communicated to the public, thus misleading investors who relied on upper management's assurances during earnings calls and SEC filings.

Corporate Responsibilities Under Sarbanes-Oxley

Under the Sarbanes-Oxley Act, both Schuck and O'Brien had personal certification responsibilities regarding the accuracy of all financial disclosures made to the Securities and Exchange Commission (SEC). The plaintiffs argue that the reports submitted to the SEC were misleading as they did not reflect the materially deteriorating financial condition of ZoomInfo. This acts as further evidence in support of the claims made against the executives.

Joseph E. Levi, Esq., representing the plaintiffs, states, “Corporate officers have a duty to ensure their companies' public statements are accurate and complete. When executives personally certify SEC filings, they assume individual responsibility for the information investors rely upon to make purchasing decisions.” 

Next Steps for Investors

Investors impacted by this downturn are encouraged to gather pertinent brokerage records reflecting their transaction details, including purchase dates and quantities. The court has set a lead plaintiff deadline for August 24, 2026. Interested parties should reach out to Levi & Korsinsky for a free, no-obligation evaluation of their eligibility to recover losses incurred during the specified period.

Closing Thoughts

The unfolding events surrounding ZoomInfo Technologies serve as a crucial reminder of the responsibility corporate leaders hold in maintaining transparency and honesty concerning their companies' financial health. As this case progresses, it may redefine the scrutiny placed on executive accountability in the financial markets.

For those who wish to take part in the recovery process, they can contact Levi & Korsinsky at (212) 363-7500 or visit their official website for more information regarding the class action suit.