LegalZoom told investors in May 2026 that full-year revenue would reach $810 million to $830 million. On August 5, that outlook was cut. Levi & Korsinsky is investigating potential securities law violations on behalf of LZ investors.
NEW YORK, Aug. 13, 2026 (GLOBE NEWSWIRE) — Three months after telling investors it expected full-year revenue of $810 million to $830 million, LegalZoom.com, Inc. (NASDAQ: LZ) reduced that outlook to approximately $795 million to $805 million on August 5, and shares fell. If you lost money on LegalZoom stock, you are encouraged to submit your LZ losses for review. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.
The timeline: On May 6, 2026, LegalZoom’s earnings release stated that “[r]evenue is expected to be in the range of $810 million to $830 million” and that the outlook “reflects the continued scaling of our higher-value growth initiatives and ongoing momentum from our partner channel through the remainder of the year.” On August 5, 2026, the Company guided third-quarter revenue to $194 million — below analyst estimates — and lowered the full-year range. Management attributed the change to declining Google search traffic as AI-generated answers replace clicks, and to paid search becoming more expensive and less efficient.
Separately, in its DEF 14A submitted April 22, 2026, the Company stated: “AI is making our services more relevant, not less.” Following the August 5 outlook reduction, JPMorgan and William Blair both downgraded LZ, citing reduced growth visibility and search-channel uncertainty.
Shareholders who purchased LegalZoom stock and suffered losses may request a free case evaluation here or call (212) 363-7500.
WHY LEVI & KORSINSKY — Ranked in ISS Securities Class Action Services’ Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors.
Frequently Asked Questions About the LZ Investigation
Q: Which statements are being investigated as potentially misleading? A: The investigation concerns whether LegalZoom.com, Inc. made materially false or misleading statements regarding its full-year revenue outlook and the durability of its customer-acquisition channels. On August 5, 2026, the Company reduced full-year revenue guidance to approximately $795-$805 million from $810-$830 million and guided third-quarter revenue below estimates, and the stock declined.
Q: When did LegalZoom allegedly mislead investors? A: The investigation concerns statements made before the August 5, 2026 outlook reduction that allegedly caused investors to purchase securities at inflated prices.
Q: Who is eligible to participate in the LZ investigation? A: Investors who purchased LZ stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses — not on whether you still hold the shares.
Q: What do LZ 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 to participate in the investigation.
Q: What documents do I need to participate? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.
Q: What if I already sold my LZ shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought LZ and sold at a loss may still participate in the investigation.
Q: What does it cost me to participate? A: There is no upfront cost to participate. Securities investigations and any resulting actions are generally handled on a contingency basis — no upfront fees, no retainer, and no out-of-pocket costs.
Q: Do I need to go to court or give testimony? A: No. Participating in the investigation does not require court appearances or depositions.
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
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