Key Takeaways:
Kaplan Fox & Kilsheimer filed a securities class action against ZoomInfo Technologies over a 33 percent stock drop tied to slashed 2026 revenue guidance.
"In the closing days of March and into April, we saw a trend of AI and agentic confusion," Chief Executive Officer Henry Schuck said on the May 11 earnings call, which "led to a pause in purchasing decisions."
The suit, filed in the U.S. District Court for the Western District of Washington, covers investors who bought ZoomInfo securities between Nov. 3, 2025 and May 11, 2026. The company cut its 2026 revenue outlook to $1.185 billion-$1.205 billion from $1.247 billion-$1.267 billion, flagged $45 million-$60 million in restructuring costs and a 20 percent workforce reduction. Shares fell $1.98 to close at $4.06 on May 12.
The complaint alleges ZoomInfo overstated demand for its AI-driven go-to-market products while slowing seat-based demand and weakening upsells undermined its growth plan. Investors have until Aug. 24 to seek lead plaintiff appointment in the case, Tejeda v. ZoomInfo Technologies et al.
The class action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Plaintiffs allege the company and senior executives created a false impression of reliable revenue projections and sustained improvement in net revenue retention, while customers shifted toward consumption-based usage models and built internal AI-driven go-to-market solutions.
ZoomInfo, which provides go-to-market intelligence and customer engagement software for sales, marketing and recruiting teams, issued its initial 2026 guidance of $1.247 billion-$1.267 billion on Feb. 9. The company had said its "innovative go-to-market AI" was "driving stronger daily engagement from a diverse set of go-to-market personas."
The May 11 disclosure marked a sharp reversal. Beyond the guidance cut, the company said it would realign its downmarket business and lay off about a fifth of its workforce. The 33 percent single-day decline erased roughly $1.98 per share in value, leaving the stock at $4.06.
The lead plaintiff deadline of Aug. 24 applies to investors seeking to direct the litigation under the Private Securities Litigation Reform Act. Class members who do not seek appointment can still share in any recovery. Kaplan Fox & Kilsheimer, Bleichmar Fonti & Auld and Faruqi & Faruqi are among firms soliciting ZoomInfo investors.
The case adds to pressure on ZoomInfo as it navigates an AI-driven shift in its customer base, a challenge echoing across the broader SaaS and sales-intelligence sector as buyers reassess AI product spending. Investors will watch whether the company can stabilize net revenue retention and whether additional guidance revisions follow in the coming quarters.
This article is for informational purposes only and does not constitute investment advice.
