ZoomInfo’s SEC Filings Allegedly Used Generic Risk Language to Obscure Business Weakness While Executives Projected Confidence in 2026 Growth
NEW YORK, July 20, 2026 (GLOBE NEWSWIRE) — Levi & Korsinsky, LLP examines the adequacy of ZoomInfo Technologies, Inc.’s (NASDAQ: GTM) risk disclosures during the period between November 3, 2025 and May 11, 2026. A securities class action has been filed on behalf of investors who suffered losses. Find out if you qualify to recover losses from inadequate disclosures. You may also contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.
Shares fell $1.98 per share, a 33% decline, after ZoomInfo revealed a sharp deterioration in its 2026 growth outlook on May 11, 2026, slashing full-year guidance that had been set just three months earlier.
What the Company Disclosed
Throughout the Class Period, ZoomInfo’s public filings and earnings presentations contained forward-looking statements about revenue growth, net revenue retention improvement, and the trajectory of its AI-driven product suite. The Company’s fiscal 2026 guidance projected revenue of $1.247 billion to $1.267 billion, representing positive 1% annual growth at the midpoint. SEC filings included standard cautionary language warning that actual results could differ from projections.
What the Complaint Challenges as Missing
The securities action contends that these disclosures failed to address specific, material risks that were already affecting ZoomInfo’s business:
- Customers were actively migrating from legacy seat-based subscription platforms toward consumption-based usage models, undermining the renewal economics that supported guidance
- Downmarket customer retention was weakening in ways not reflected in the aggregate 90% NRR figure highlighted to investors
- Enterprise customers were developing internal AI-driven go-to-market solutions that competed directly with ZoomInfo’s core value proposition
- The Operations suite’s 20% year-over-year growth, while real, was insufficient to offset accelerating churn in the legacy seat-based business
- The Company’s transition from seat-based pricing to Data-as-a-Service models carried execution risks that were not quantified or meaningfully addressed in risk factor disclosures
Why Generic Warnings Allegedly Failed Investors
The complaint challenges the adequacy of ZoomInfo’s cautionary language by drawing a distinction between hypothetical risks and risks that had already begun to materialize. As pleaded, the Company’s boilerplate warnings about competitive pressures and customer purchasing patterns did not disclose that specific, quantifiable headwinds were already eroding the business assumptions underlying the fiscal 2026 outlook.
While executives publicly described “a lot in the positive column” and expressed confidence in “sustainably delivering revenue growth,” the lawsuit maintains that known internal trends contradicted these assurances. The gap between what was disclosed generically and what was allegedly known specifically is at the center of the disclosure adequacy claims.
“Generic risk factor language cannot substitute for disclosing specific, known problems that are already affecting a company’s operations. When a company’s own internal metrics show deterioration that contradicts public guidance, investors deserve more than boilerplate cautionary statements.” — Joseph E. Levi, Esq.
Speak with an attorney about ZoomInfo’s disclosure failures or call (212) 363-7500.
LEAD PLAINTIFF DEADLINE: August 24, 2026
Levi & Korsinsky, LLP — Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered.
Frequently Asked Questions About the GTM Lawsuit
Q: What specific misstatements does the GTM lawsuit allege? A: The complaint alleges ZoomInfo made materially false or misleading statements regarding its growth potential for fiscal year 2026, particularly concerning the health of its legacy seat-based subscription business, downmarket customer retention, and the ability of its AI product transition to offset churn. When the true state was revealed on May 11, 2026, the stock price declined 33%.
Q: When did ZoomInfo allegedly mislead investors? A: The class period runs from November 3, 2025 to May 11, 2026. During this period, executives allegedly made optimistic statements about revenue growth, net revenue retention, and AI product adoption while concealing known deterioration in the underlying business.
Q: What do GTM investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as a class member.
Q: What if I already sold my GTM shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.
Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. You submit a claim form to receive your portion of recovery.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: How long will the lawsuit take to resolve? A: Securities class actions typically take two to four years from initial filing to resolution.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
Tel: (212) 363-7500
Fax: (212) 363-7171
