#USA #New York #Kuehn Law #fiduciary breaches #ZoomInfo Technologies

Kuehn Law's Investigation into ZoomInfo Technologies, Inc.

Kuehn Law, PLLC, a law firm specializing in shareholder litigations, has recently announced an investigation into ZoomInfo Technologies, Inc., specifically targeting the actions of certain officers and directors within the company. The inquiry stems from concerns over potential breaches of fiduciary duties owed to shareholders—a serious allegation that could have significant implications for the firm's stakeholders.

According to court documents from a federal securities lawsuit, the claim asserts that high-ranking insiders at ZoomInfo failed to accurately represent critical financial and operational realities affecting the company. Here are the key claims raised in the lawsuit:

1. Misrepresentation of Financial Stability: The lawsuit contends that the company misleadingly inflated its financial results during the COVID-19 pandemic. The temporary surge in demand for ZoomInfo's database services sparked by the pandemic created an illusion of stronger-than-actual performance.

2. Deterioration of Customer Relationships: Claims indicate that a significant number of ZoomInfo's customers have sought to either drastically reduce their usage of the product or cease using it altogether. Such actions signal potential dissatisfaction and may hint at underlying issues with the company's service offerings.

3. Coercive Business Practices: The lawsuit outlines allegations against ZoomInfo regarding its auto-renewal policies described as manipulative and coercive. It accuses the company of using these tactics, along with litigation threats, to ensure that customers remain contractually bound, even against their will. This raises questions about the ethical standards employed in maintaining customer loyalty.

4. Damage to Competitive Position: The claims suggest that the aforementioned coercive strategies and general mismanagement resulted in damaged relationships with clients, impairing ZoomInfo's competitive advantages in the market. This could pave the way for a significant future decline in revenue as customer renewals face a potential cliff.

5. Overstated Metrics: Ultimately, the allegations state that the culmination of the above issues has led to a reported inflation of key metrics, including revenues and operating income, which may misrepresent the company’s actual health and stability.

Given these claims, Kuehn Law is now encouraging current shareholders of ZoomInfo Technologies, particularly those who purchased shares prior to November 10, 2020, to come forward. Legal expert Justin Kuehn urges these investors to reach out for a consultation, emphasizing that there exists a limited window for shareholders to take action regarding this potential breach of duty.

Kuehn Law operates on a contingency basis, meaning that they cover all costs associated with the case without charging their investor clients—an inviting factor for those considering legal support. The firm stresses the importance of shareholder participation, emphasizing that every voice counts in preserving the integrity of market systems.

For additional details or to discuss potential participation in this case, affected shareholders are invited to contact Kuehn Law directly through their established channels, including phone and email.

The legal landscape surrounding corporate governance is increasingly scrutinized, and ruling on such matters can set significant precedents. Stakeholders in ZoomInfo Technologies, Inc. are encouraged to promptly take action if they believe their rights have been compromised. Strengthening investor rights is not only crucial for individual participants but also for the overall health of the financial markets.

For further inquiries, please reach out to:

Kuehn Law, PLLC
Justin Kuehn, Esq.
53 Hill Street, Suite 605
Southampton, NY 11968
Email: [email protected]
Phone: (833) 672-0814

Your investment, your voice, and ultimately, your future depend on the steps you take today.