ZoomInfo sued for securities fraud after 33% stock drop on AI confusion

ZoomInfo Technologies Inc. was sued for securities fraud after its stock plunged 33% on May 12 following a revenue guidance cut tied to "AI confusion" among customers.

"ZoomInfo's optimistic plan for continued growth was undermined by slowing seat-based demand and customers revising decisions to purchase AI products," the complaint filed by Bleichmar Fonti & Auld LLP in the U.S. District Court for the Western District of Washington alleges.

The company on May 11 cut its 2026 revenue forecast to $1.185 billion to $1.205 billion, down from $1.247 billion to $1.267 billion, and announced plans to lay off 20% of its workforce. ZoomInfo said it expects $45 million to $60 million in restructuring costs, citing "a trend of AI and agentic confusion in the Company's customer conversations." The stock fell $1.98 to close at $4.06 on May 12.

The lawsuit seeks to recover losses for investors who bought ZoomInfo securities between Nov. 3, 2025 and May 11, 2026. Investors have until Aug. 24 to seek appointment as lead plaintiff in the case, which is captioned Tejeda v. ZoomInfo Technologies et al., No. 26-cv-05696.

The allegations center on whether ZoomInfo misrepresented demand for its AI-integrated go-to-market products. The company had told investors that "the demand for AI for GTM is evident up and down our customer stack" and issued its 2026 guidance on Feb. 9 based on bringing its "all-in-one AI platform" to customers at scale. In reality, customer retention declined as clients rejected the AI products, the complaint alleges.

The 33% decline pushed ZoomInfo shares to their lowest level in recent history. The company's next catalyst will be its response to the lawsuit and any further updates on customer retention trends in its Q2 2026 earnings report.

This article is for informational purposes only and does not constitute investment advice.