ZoomInfo Agrees To Pay $44 Million To Settle Shareholder Class Action, But Three Suits Remain
The proposed settlement needs court approval, and the company says part of the $44 million should be covered by remaining insurance funds.
ZoomInfo agreed to pay $44 million to settle a shareholder class action, according to an 8-K filed Monday. The parties signed a memorandum of understanding on Friday laying out the proposed terms.
What the 8-K says
The suit was filed on September 4, 2024, in the U.S. District Court for the Western District of Washington. It covers people who bought ZoomInfo common stock between November 10, 2020, and August 5, 2024.
The complaint accused the company and certain current and former officers and affiliates of false or misleading statements about its business, operations and prospects, including the effects of the COVID-19 pandemic on its performance.
ZoomInfo would pay the $44 million to the class in exchange for dismissal of the case and a release of claims against the defendants. The company expects a portion of the payment to be covered by remaining insurance funds.
The filing says the deal is not an admission of fault or wrongdoing by ZoomInfo or any other defendant. The company says settling now is in the interest of the company and its stockholders, given the costs, uncertainty and distraction of continued litigation.
What it changes, and what it doesn't
The settlement needs preliminary and final approval from the Washington court, plus certain other conditions. The filing lists risks including failure to execute a definitive settlement agreement, objections or appeals, higher-than-expected expense, and a larger class after confirmatory discovery.
It would not end the company's legal exposure. Three matters stay open:
- Related shareholder derivative suits against current and former directors and officers, pending in the Washington court and the Delaware Court of Chancery.
- A direct, non-class action in Washington by investors who have said they intend to opt out of the class.
- A separate class action filed June 25, 2026, against ZoomInfo and certain current officers, which the filing calls unrelated.
The company says it intends to keep defending all of them vigorously.
What to watch
The next steps are a definitive settlement agreement and the Washington court's decision on preliminary approval. The filing gives no dates for either.
The settlement would resolve only the class action covering purchases from November 10, 2020, to August 5, 2024. The derivative, opt-out and June 2026 suits would continue.
Sources
- 8-K Filing — ZoomInfo Technologies Inc. (GTM) — SEC EDGAR
