LegalZoom.com, Inc. (NASDAQ: LZ) shares dropped after the Company's August 5 second-quarter release, in which adjusted earnings per share came in at $0.16 versus the $0.15 consensus -- while full-year revenue guidance was reduced to approximately $795 million to $805 million from $810 million to $830 million. If you lost money on LZ shares, click here to submit your information. You may also contact Joseph E. Levi, Esq. via email at jlevi@levikorsinsky.com or by telephone at (212) 363-7500.
The headline quarter looked fine. Revenue was approximately $205.3 million, essentially in line. Adjusted EPS beat. The forward numbers were another matter: third-quarter revenue was guided to approximately $194 million, below analyst estimates, and the full-year top end came down by $25 million.
Alongside those figures, LegalZoom announced a workforce reduction of roughly 13%. JPMorgan and William Blair each downgraded the stock following the release. Levi & Korsinsky is investigating potential securities law violations at LegalZoom.com, Inc.
Shareholders who purchased LZ and suffered a loss are encouraged to have their losses evaluated at no cost, or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.
Levi & Korsinsky, LLP -- Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered.
Frequently Asked Questions About the LZ Investigation
Q: What is the LZ securities investigation about? A: A securities investigation is pending concerning LegalZoom.com, Inc. (NASDAQ: LZ) regarding potentially materially false or misleading statements. Shares fell after the Company's August 5 release reduced full-year revenue guidance to approximately $795-$805 million from $810-$830 million and disclosed a roughly 13% workforce reduction, causing losses for shareholders.
Q: Who is eligible to participate in the LZ investigation? A: Investors who purchased LZ stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.
Q: When did LegalZoom.com allegedly mislead investors? A: The investigation concerns statements made before the August 5, 2026 corrective disclosure that allegedly caused investors to purchase securities at inflated prices.
Q: What do LZ investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at jlevi@levikorsinsky.com or (212) 363-7500. No immediate action is required to remain eligible to participate in the investigation.
Q: What documents do I need to participate? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.
Q: What if I already sold my LZ shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought LZ and sold at a loss may still participate in the investigation.
Q: What does it cost me to participate? A: There is no upfront cost to participate. Securities investigations and any resulting actions are generally handled on a contingency basis. No upfront fees, no retainer, and no out-of-pocket costs.
Q: What if I live outside the United States? A: U.S. securities investigations generally cover purchases on U.S. exchanges regardless of the investor's country of residence.
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