Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against LegalZoom, Inc. (“LegalZoom” or the “Company”) (NASDAQ: LZ) on behalf of LegalZoom stockholders. Our investigation concerns whether LegalZoom has violated the federal securities laws and/or engaged in 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.
If you purchased or otherwise acquired LegalZoom shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at investigations@bespc.com, by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
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Contacts
Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
