Vancouver-based ZoomInfo Technologies (Nasdaq: ZI) is settling a class action lawsuit that could resolve several pending and expected lawsuits, according to a filing with the Securities and Exchange Commission.
The settlement is expected to cost the company between $26 million to $29 million, according to the regulatory filing.
“The settlement is not an admission of fault or wrongdoing by ZoomInfo. However, it believes that a resolution of these claims at this time is in the best interest of the company given the costs and risks inherent in litigation,” according to the company’s SEC filing.
These charges to the company are expected to happen in the first half of 2024.
In April 2021 a punitive class action suit was filed against ZoomInfo in U.S. District Court of the Northern District of Illinois over the company’s use of an Illinois resident’s name in a public facing website. The suit argued the company’s use of the name violated Illinois’ Right of Publicity Act.
In September 2021 a similar suit was filed in the Western District of Washington alleging the use of a California resident’s name on a public facing website violated California statute and common law over the right of publicity and misappropriation.
A memorandum of understanding between ZoomInfo and Illinois plaintiffs to settle the case was agreed upon on Feb. 24. It is awaiting final approval from the Illinois court, according to ZoomInfo’s SEC filing. This MOU will also resolve the California claim and unfiled claims in Indiana and Nevada.
The MOU states that ZoomInfo will pay an amount equal to 3% of statutory damages to each eligible class member.
ZoomInfo sells business intelligence software to sales organizations. It has a huge data set of names, roles and contact info on people within companies. The information and ZoomInfo’s software integrates with other business technology such as customer relationship management and email tools. The company is focused on helping customers drive sales and go-to-market strategies.
Earlier this month ZoomInfo announced full-year revenue of $1.24 billion, up 13% year-over year. It reported net income of $107.3 million, or 27 cents per share.
