Investors in ZoomInfo Technologies Inc. face an August 24, 2026 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit alleging violations of federal securities laws. Bleichmar Fonti & Auld LLP reminds stockholders that the action was filed on behalf of all investors who purchased or otherwise acquired ZoomInfo securities between November 3, 2025 and May 11, 2026. The lawsuit concerns false and misleading statements about the company's business operations, growth prospects, and financial stability, specifically regarding the impact of its AI-integrated products on customer retention. The case is captioned Tejeda v. ZoomInfo Technologies et al., No. 26-cv-05696, and is pending in the U.S. District Court for the Western District of Washington.

The lawsuit asserts that throughout the class period, defendants made materially false and misleading statements while allegedly concealing the true extent of slowing growth in ZoomInfo's legacy seat-based subscription platforms and weakening customer retention. The action contends that material headwinds included customers migrating toward consumption-based usage models and developing internal AI-driven go-to-market solutions, which reduced dependence on ZoomInfo's platform. Despite these concerns, management reportedly projected confidence and guided for positive revenue growth in fiscal 2026.

On February 9, 2026, ZoomInfo issued its 2026 revenue guidance "in the range of $1.247 billion to $1.267 billion." The securities action alleges this guidance was issued without adequate disclosure that legacy seat-based subscription erosion and customer migration to consumption-based models were accelerating beyond what the projections could absorb. On May 11, 2026, ZoomInfo announced its Q1 2026 financial results and slashed its 2026 revenue guidance from $1.247-$1.267 billion to $1.185-$1.205 billion. The company revealed that its customer growth "regressed" due to "a trend of AI and agentic confusion in [the Company’s] customer conversations," leading to a pause in purchasing decisions.

Following this announcement, ZoomInfo's stock price fell from a closing market price of $6.04 per share on May 11, 2026, to $4.06 per share on May 12, 2026, a decline of $1.98 per share, or approximately 33%. The lawsuit alleges that the company's emerging AI products had not yet generated sufficient revenue momentum to offset weakening demand in its legacy seat-based subscription business. The Operations suite, described as growing over 20% year-over-year, represented only approximately 15% of total business, while the legacy business continued to comprise the majority of revenue.

Legal Framework and Claims

The action asserts claims under Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, as well as Section 20(a) controlling person liability. The complaint names Henry Schuck, Chief Executive Officer and Chairman of the Board, and M. Graham O'Brien, Chief Financial Officer, as controlling persons of ZoomInfo during the Class Period. Under Sections 302 and 906 of the Sarbanes-Oxley Act, Schuck and O'Brien personally certified the accuracy and completeness of ZoomInfo's quarterly and annual reports filed with the SEC.

Key Details

Pratt Industries has closed deals worth hundreds of thousands of dollars over 10 months and several million dollars a year after modernizing its field sales prospecting with ZoomInfo. The world's largest privately owned manufacturer of 100% recycled paper packaging replaced a previous data provider that suffered from outdated information and high email bounce rates. By integrating verified direct lines and buying signals, the company improved the efficiency of its nationwide sales network.

Pratt Industries operates a multi-billion-dollar enterprise built over 30 years, featuring recycling facilities, paper mills, and manufacturing plants. Its growth strategy relies on field sales representatives who build long-term relationships through direct engagement. However, the company previously faced challenges with stale data, where inactive phone numbers and incorrect email addresses hindered outreach efforts.

In the manufacturing sector, inaccurate data carries significant costs. Many packaging decision-makers have limited social media activity, making direct contact essential. Previously, sales representatives often had to initiate contact through receptionists or warehouse staff, a process that could extend the sales cycle by years before reaching a decision-maker.

The modernization effort retained Pratt's traditional field sales motion while upgrading the supporting data infrastructure. Representatives can now access verified direct lines to reach specific individuals rather than relying on switchboard extensions. The platform also provides buying signals that identify companies actively researching packaging, allowing for warmer initial contact.

Additionally, saved account lists alert sales representatives to organizational triggers such as executive changes, facility expansions, or new CEO appointments. These insights provide a contextual basis for sales calls, moving away from cold outreach. The system enables representatives to identify decision-makers quickly when facing initial resistance at a client site.