Investigation Launched on ZoomInfo Technologies by Kahn Swick & Foti, LLC

Investigation of ZoomInfo Technologies by Kahn Swick & Foti, LLC

Former Louisiana Attorney General Charles C. Foti, Jr. has recently announced that his law firm, Kahn Swick & Foti, LLC (KSF), is launching an investigation into ZoomInfo Technologies, Inc. The inquiry stems from significant financial discrepancies disclosed by the company in its second-quarter earnings report for 2024, as well as accusations of misconduct against certain official members.

On August 5, 2024, ZoomInfo reported a staggering $33 million charge as a result of unpaid customer accounts. This revelation prompted the company to shift to a "new business risk model" that required upfront payments from small business clients. The company acknowledged that many of its previous customers could not afford its services, resulting in a steep reduction of its annual revenue guidance by $65 million. The projection was adjusted down from an estimated range of $1.255 to $1.27 billion to a new forecast of $1.19 to $1.205 billion.

These financial troubles did not go unnoticed. Following the report, ZoomInfo and some of its top executives faced a securities class action lawsuit. The lawsuit alleges that the company failed to disclose crucial information, resulting in violations of federal securities laws. Recently, a court denied the company's motion to dismiss the case, indicating the legal challenges facing the firm are likely to continue.

The law firm KSF is investigating whether the actions of ZoomInfo's officers and directors amounted to breaches of their fiduciary duties toward shareholders or other violations of state or federal regulations. This inquiry raises serious questions about corporate governance and accountability within ZoomInfo.

As a premier boutique securities litigation law firm, Kahn Swick & Foti specializes in recovering investments lost due to corporate fraud. Their expertise will be instrumental in assessing the degree to which ZoomInfo's upper management may have engaged in questionable practices. The firm actively seeks input from investors who may possess information pertinent to the ongoing investigation. They encourage anyone who has been affected or has insights to contact them without any obligation.

For affected shareholders, KSF has provided contact information for inquiries, inviting long-term holders of ZoomInfo shares to reach out to discuss their legal rights and potential claims. This approach illustrates the firm’s commitment to defending investor interests amid these troubling allegations.

KSF has garnered recognition as one of the top 10 plaintiff law firms in the nation based on settlements secured and has a diverse clientele, including both institutional and retail investors. Their multi-state presence, including offices in New York, Delaware, California, Louisiana, Chicago, and a representative office in Luxembourg, allows them to address a wide range of investor concerns effectively.

In today's corporate landscape, transparency and accountability are paramount. The investigation into ZoomInfo serves as a crucial reminder of the importance of corporate governance and the duty of executives to uphold ethical standards in their financial reporting and business practices. As the investigation unfolds, stakeholders will be watching closely to grasp the potential implications yet to arise from this inquiry.

Those with pertinent information or legal concerns regarding ZoomInfo Technologies can visit Kahn Swick & Foti's dedicated page or reach out directly to Managing Partner Lewis Kahn for support. With the trajectory of this investigation still uncertain, its outcomes could have far-reaching effects on both ZoomInfo and the broader market.