SAN FRANCISCO, July 15, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges LegalZoom.com, Inc. (NASDAQ: LZ) investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys. Visit: www.hbsslaw.com/investor-fraud/lz Contact the Firm Now: LZ@hbsslaw.com 844-916-0895 Investigation into LegalZoom.com, Inc. (LZ): LegalZoom finds itself under increased scrutiny regarding the progress of its strate ...

NEW YORK, July 12, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against LegalZoom.com, Inc. ("LegalZoom" or the "Company") (NASDAQ: LZ) on behalf of LegalZoom stockholders. Our investigation concerns whether LegalZoom has violated the federal securities laws and/or engaged in other unlawful business practices. Click here to participate in the action. On July 9, 2024, LegalZoom issued a press release announcing th ...

Company Overview - LegalZoom, Inc. has reduced its revenue expectation for the full year to a range of $675 million to $685 million and its free cash flow expectation to a range of $75 million to $85 million [3] Leadership Changes - The current Chief Executive Officer, Dan Wernikoff, will be departing the Company and resigning from the Board [3] Market Reaction - Following the announcements, multiple analysts downgraded LegalZoom, resulting in a stock price decline of $1.99 per share, or 25.35%, closing at $5.86 on July 10, 2024 [3]

LegalZoom stock is down. What's up with that? On the plus side, LegalZoom says it should still generate between $75 million and $85 million in positive free cash flow this year. At the stock's current price, this implies a price-to-free cash flow ratio of just 13.2. It won't take a lot of growth to justify a valuation that cheap. LegalZoom.com (LZ -24.90%) stock collapsed in early trading Wednesday, on reports of what some deemed a boardroom coup that sparked a series of downgrades from Wall Street analysts ...

Core Points - LegalZoom's shares dropped 30% to an all-time low following the announcement of CEO Dan Wernikoff's departure and a reduction in full-year guidance [1][5][6] - The company is transitioning to a subscription-based revenue model to drive long-term profitable growth [6] - Jeffrey Stibel, a current board member and entrepreneur, has been appointed as the new CEO [3][5][7] Financial Outlook - LegalZoom revised its 2024 revenue outlook to a range of $675 million to $685 million, down from $700 million to $720 million [6] - The company's free cash flow estimate was also reduced to $75 million to $85 million, compared to the previous estimate of $85 million to $95 million [6]

Core Viewpoint - Johnson Fistel, LLP is investigating potential violations of securities laws by LegalZoom.com, Inc. related to misrepresentation or failure to disclose adverse information to investors, particularly following a significant leadership change that impacted stock performance [1][5]. Group 1: Investigation Details - The investigation focuses on whether LegalZoom or its executives misrepresented material information to investors, leading to financial losses that may be recoverable under federal securities laws [1]. - LegalZoom announced a leadership change on July 9, 2024, with CEO Dan Wernikoff departing immediately, which resulted in a more than 25% decline in the company's stock during premarket trading on July 10, 2024 [5]. Group 2: Legal and Contact Information - Johnson Fistel, LLP is a recognized shareholder rights law firm that represents investors in derivative and securities class action lawsuits [6]. - Individuals with relevant nonpublic information are encouraged to assist in the investigation or consider the SEC Whistleblower program, which may offer rewards for original information leading to successful recoveries [3].

Group 1 - The current CEO of LegalZoom.com, Dan Wernikoff, has resigned from the company and its board of directors [1] - Jeffrey Stibel has been appointed as the new CEO, with the decision made by the board of directors [5] - John Murphy has been named the lead independent director of the board [2] Group 2 - LegalZoom.com stock (NASDAQ:LZ) has decreased by 28% as of Wednesday morning [3] - The company has lowered its revenue guidance for 2024 to between $675 million and $685 million, compared to Wall Street's estimate of $710.35 million [6]

John Murphy named Lead Independent Director "The Board identified Jeff as the ideal CEO to lead LegalZoom's next chapter," said Mr. Murphy. "He is a seasoned executive who has been a deeply involved member of the Board for nearly a decade, including serving in a leadership position as Chairman since 2018. Jeff possesses extensive knowledge of the Company's product offerings, technology infrastructure, and attorney network, as well as the competitive landscape and customer segment. He also brings ideal exper ...

MOUNTAIN VIEW, Calif., July 09, 2024 (GLOBE NEWSWIRE) -- LegalZoom.com, Inc. (Nasdaq: LZ) today announced that the Company's current Chairman of the Board of Directors, Jeffrey Stibel, has been named LegalZoom's next CEO, effective immediately. LegalZoom has also appointed John Murphy as the Lead Independent Director of the Board. As part of this transition, current Chief Executive Officer Dan Wernikoff will be departing the Company, including resigning from the Board. Mr. Stibel joined the Board of LegalZo ...

Core Insights - LegalZoom has partnered with BusinessLoans.com to enhance access to capital for small business owners, addressing a critical need for funding in the early stages of business development [12][1] - The partnership aims to provide a streamlined process for small businesses to secure loans and credit options directly through the LegalZoom platform, leveraging BusinessLoans.com's marketplace capabilities [7][8] Company Overview - LegalZoom is the leading online platform for business formation in the United States, offering a range of legal, tax, and compliance products to support small business owners [3] - The company is committed to making legal and financial expertise accessible and affordable, empowering entrepreneurs to realize their business aspirations [3][6] Market Context - According to Forbes, 38% of small businesses fail due to cash reserve exhaustion or inability to secure additional capital, highlighting the importance of access to funding [6] - Only 35% of small business owners manage to obtain a business loan or credit card within their first year, indicating a significant gap in financial support for new entrepreneurs [1][6] Partnership Details - BusinessLoans.com offers a variety of financial products, including secured loans and credit-building options, tailored to the specific needs of small businesses [7][13] - The partnership allows customers to apply for funding without leaving the LegalZoom site, simplifying the borrowing process through a guided questionnaire [8][12]