Ohio named lead plaintiff in class-action lawsuit against Spectrum News
Ohio is stepping up as the lead plaintiff in a significant class-action lawsuit against ZoomInfo Technologies Inc. The software company is under fire for allegedly misleading investors, resulting in $75.9 million in losses for two state pension funds. Specifically, the Ohio Public Employees Retirement System and the State Teachers Retirement System are among those feeling the financial strain.
According to a statement from the Ohio attorney general’s office, ZoomInfo Technologies is accused of committing securities fraud. The company allegedly concealed a decline in demand for its product following a temporary revenue increase at the start of the COVID-19 pandemic. This deliberate misinformation has led to substantial financial repercussions for investors.
In a move to seek accountability, Ohio has been appointed as the lead plaintiff in the securities class-action lawsuit against ZoomInfo Technologies Inc. This legal action signals a significant step in holding the company accountable for its actions. It follows a motion filed by Ohio Attorney General Dave Yost on November 13 and is being pursued in the U.S. District Court for the Western District of Washington.
Attorney General Yost emphasized the importance of ensuring transparency in the market. He stated, “ZoomInfo’s leadership willfully blinded investors to the reality that interest in the company’s product was waning.” Yost further emphasized the impact of this reckless deception, which has resulted in substantial losses for Ohio’s pension systems and other investors. This legal action seeks to shed light on the alleged fraudulent practices and seek restitution for those affected by ZoomInfo Technologies’ actions.
