ZoomInfo Shareholder Sues Over Customer Churn After Pandemic (1)

ZoomInfo Technologies Inc. was sued by a shareholder who alleges the software provider misled investors about its revenue and hid customer churn.

ZoomInfo reported record financial results during the Covid-19 pandemic, as businesses emphasized digital sales and marketing, the lawsuit said. But after the initial wave of demand abated, numerous customers attempted to reduce their use or, in some cases, abandon the product, the suit said.

The investor accused ZoomInfo of using “manipulative and coercive” auto-renewal policies, as well as litigation threats, to stem the flow of its exits. That created a hidden demand cliff for future contract renewals, said ...