NEW YORK, March 01, 2023 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of LegalZoom, Inc. (“LegalZoom, Inc.” or the “Company”) ( LZ). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether LegalZoom, Inc. and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On February 17, 2023, in a filing with the U.S. Securities and Exchange Commission, Legal Zoom disclosed that it had “identified an error within its income tax provision relating to the identification of named executive officers subject to limitation on the deductibility of executive compensation under Internal Revenue Code Section 162(m) (‘Section 162(m)’). As a result of this error, deferred tax assets as of March 31, 2022 were understated and the provision for income taxes for the three months then ended was overstated by $3.9 million, reflecting a discrete impact of $2.4 million and a $1.5 million impact of the error in the annual effective tax rate. The correction of this error will reduce the Company’s net loss for the quarter ended March 31, 2022 (‘Q1 2022’).” Accordingly, “on February 16, 2023, management and the Audit Committee of the Board of Directors (‘Audit Committee’) concluded that the previously issued unaudited condensed consolidated financial statements (the ‘quarterly financial statements’) of the Company as of and for Q1 2022 included in the Company’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (‘SEC’) on May 16, 2022 (the ‘Q1 2022 Form 10-Q’) were materially misstated. As a result, the quarterly financial statements included in the Q1 2022 Form 10-Q require restatement and should no longer be relied upon.”
On this news, LegalZoom’s stock price fell $0.29 per share, or 3.43%, to close at $8.17 per share on February 21, 2023.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980
