ZoomInfo Technologies Faces AI-related Securities Class Action

A new AI securities class action was filed last month against data broker ZoomInfo Technologies. The plaintiffs allege that ZoomInfo failed to consider the impact that the AI market would have on its core business. While ZoomInfo was investing in AI capabilities and initiatives, plaintiffs claim that leadership didn’t account for the big-picture disruptions caused by AI. A recent article from The D&O Diary discusses the case and distinguishes it from more traditional AI-washing securities litigation:

“Of note, the plaintiffs do not contend that these AI products failed to exist or that the company fabricated its AI initiatives. Instead, they allege that management omitted material information regarding the effect AI was having on Zoom’s legacy business. Specifically, the complaint alleges that customers increasingly were moving away from traditional seat-based subscription models toward consumption-based pricing and internally developed AI-driven sales tools.”

The claims in this new case are similar to those in Tamraz, Jr v. Reddit. In that ongoing litigation, shareholders allege that Reddit did not disclose the risks that AI posed to its underlying business model. Since AI summaries often cite Reddit, potential users never have to click into the site to get information. Plaintiffs claim this drove down traffic and thus drove down revenue. The article notes that AI-related securities litigation is on the rise, accounting for more than ten percent of securities class actions in 2026. Outside of a strictly litigation context, these cases remind us to take a step back and look at the big picture. Assess the industry-wide impacts of AI to identify potential risks to your business model. AI is likely here to stay in some manner, and companies must adapt to that reality.