#United States #New York #Levi Korsinsky #GTM #ZoomInfo

Important Update for ZoomInfo Investors

Levi & Korsinsky, LLP has brought to the attention of investors in ZoomInfo Technologies, Inc. (NASDAQ: GTM) the urgency of an impending securities class action lawsuit. This lawsuit is particularly relevant for those who held shares between November 3, 2025, and May 11, 2026. With an application deadline set for August 24, 2026, investors need to act swiftly if they wish to join this legal challenge.

Context of the Allegations

In recent disclosures, ZoomInfo experienced a significant downturn, witnessing a 33% drop in share price, equating to a loss of approximately $1.98 per share. This decline followed the company's stark announcement regarding its growth projections for 2026, which led to a drastic cut in its full-year guidance. The crux of the lawsuit centers on allegations that management consistently portrayed an overly optimistic outlook on the company’s business trajectory while failing to disclose critical downward trends among its customer base.

Key Points from the Lawsuit

The complaint asserts that

• - ZoomInfo's management was aware of a substantial shift in customer behaviors, particularly a migration away from traditional seat-based subscription models to consumption-based approaches.
• - This transformation has not only impacted the company’s revenue predictability but has also threatened the core of its business model. As customers develop their own AI-driven solutions, the reliance on ZoomInfo's subscription services is diminishing, significantly affecting revenue forecasts.
• - While ZoomInfo highlighted strong retention rates and upmarket momentum, the lawsuit claims that these figures obscure troubling churn rates in the downmarket segment. Effectively, the reported 90% Net Revenue Retention (NRR) may have masked significant weaknesses as those numbers integrated both thriving upmarket accounts and struggling smaller clients.

Furthermore, the lawsuit contends that internal development of AI tools by customers reduces their dependence on ZoomInfo's legacy services, adding to the claims of deceptive practices by the company’s management.

Impact of the Consumption Shift

The transition to consumption-based revenue models has shifted the landscape for ZoomInfo. The company has historically depended on reliable, predictable income from annual seat-based subscriptions, but this shift brings substantial uncertainty. Management’s focus on AI opportunities and growth in their Operations suite is seen as an attempt to draw attention away from the foundational issues affecting investor confidence. By the time ZoomInfo released its first-quarter results for 2026, it became clear that the erosion of the traditional subscription model was happening at a rate faster than new revenue streams could compensate.

Next Steps for Investors

For investors who purchased ZoomInfo stock during the class period and experienced losses, the following steps are essential:

• - Gather documentation of your purchases, including dates, share amounts, and purchase prices.
• - Contact Levi & Korsinsky for a free evaluation at [email protected] or by calling (212) 363-7500.
• - Note that participation in the lawsuit does not require any upfront fees, nor does it necessitate appearing in court; the process allows for a claim to be submitted for recovery.

Conclusion

Investors are encouraged to stay informed about the developments regarding the lawsuit and ensure they act promptly if they wish to seek recovery for their losses. The legal proceedings underscore the need for transparency in corporate governance, particularly in regards to how business models evolve in today's rapidly changing technological landscape. As stated by Joseph E. Levi, Esq., "Investors deserve transparency about material risks that could affect their investments." Investors potentially facing losses must understand that participation can ultimately assist in achieving fair recovery during these turbulent times.