Kirby(US:KEX) GlobeNewswire News Room·2024-09-26 21:06Core Viewpoint - A class action lawsuit has been filed against ZoomInfo Technologies Inc. for alleged inflation of financial results and coercive customer retention tactics during the Class Period from November 10, 2023, to August 5, 2024 [1][6]. Financial Performance - ZoomInfo reported a decline in Net Revenue Retention (NRR) from 87% in Q4 2022 to 85% in Q1 2024, indicating weakening customer relationships [4][6]. - The company reduced its annual revenue guidance multiple times, from $1.275 billion to $1.285 billion down to a range of $1.19 billion to $1.205 billion [3][5]. - Significant stock price declines were observed following negative financial disclosures, with a drop of over 29% on November 1, 2022, and approximately 30% on July 31, 2023 [2][3]. Customer Base and Retention Issues - ZoomInfo experienced a decline in customers with annual contract values of $100,000 or greater, indicating challenges in maintaining high-value clients [3]. - The company faced issues with a large pool of small business customers, leading to a $33 million charge due to non-payments and necessitating a new business risk model [5][6]. Legal Allegations - The lawsuit alleges that ZoomInfo's financial results were artificially inflated due to the temporary demand surge from the COVID-19 pandemic [6]. - It is claimed that ZoomInfo employed manipulative auto-renew policies and threats of litigation to retain customers, damaging its client relationships and competitive advantages [6].