Glancy Prongay & Murray LLP Reminds Investors of Looming Deadline in the Class Action Lawsuit Against ZoomInfo Technologies Inc. (ZI)

Core Viewpoint - The article discusses a class action lawsuit against ZoomInfo Technologies Inc. due to alleged misleading statements and failure to disclose adverse facts regarding the company's business and financial performance during the Class Period from November 10, 2020, to August 5, 2024 [1][5]. Group 1: Financial Performance - On August 5, 2024, ZoomInfo reported its Q2 2024 financial results, which missed revenue and earnings expectations, and lowered its full-year guidance for revenue, adjusted operating income, and free cash flow [3]. - The company incurred a $33 million charge related to non-payments by customers and announced a new business risk model to address elevated write-offs [3]. Group 2: Stock Market Reaction - Following the financial results announcement, ZoomInfo's stock price fell by $1.79, or 10.3%, closing at $8.01 per share on August 6, 2024 [4]. Group 3: Allegations in the Class Action - The class action complaint alleges that ZoomInfo's financial results were temporarily inflated due to the COVID-19 pandemic, and that many customers were reducing or abandoning the use of the company's products [5]. - It is claimed that ZoomInfo employed manipulative auto-renew policies and coercive tactics that damaged customer relationships and created a hidden demand cliff for future contract renewals [5]. - The complaint also states that a significant portion of accounts receivable was from high-risk small business customers, and that the allowance for credit losses was inadequate, leading to misleading positive statements about the company's prospects [5].