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Edelson Lechtzin LLP Announces an Investigation LegalZoom.com, Inc. (NASDAQ: LZ) and Encourages Investors with Substantial Losses or Witnesses with Relevant Information to Contact the Firm
LegalZoom.comLegalZoom.com(US:LZ) GlobeNewswire News Roomยท2024-08-09 02:33

Core Viewpoint - Edelson Lechtzin LLP is investigating potential securities fraud and breach of fiduciary duty claims against LegalZoom.com, Inc. following significant management changes and a lowered revenue forecast [1][3][4] Group 1: Company Overview - LegalZoom is an online legal technology and services company that helps customers create legal documents without hiring a lawyer [2] Group 2: Allegations and Management Changes - On July 9, 2024, LegalZoom announced the departure of CEO Dan Wernikoff and appointed Jeffery Stibel as the new CEO, with John Murphy as the Lead Independent Director [3] - The management turnover coincided with a revision of the company's 2024 revenue forecast to between $675 million and $685 million and a reduction in free cash flow expectations to $75 million to $85 million [4] Group 3: Market Reaction - Following the announcement of management changes and the lowered forecasts, LegalZoom's stock price dropped by $1.99 per share, or 25.3%, closing at $5.86 per share on July 10, 2024 [4]