JPMorgan and William Blair downgraded LegalZoom after the Company guided third-quarter revenue to $194 million — below Wall Street estimates — and cut its full-year outlook. Levi & Korsinsky is investigating potential securities law violations.
NEW YORK, Aug. 10, 2026 /PRNewswire/ — Two Wall Street firms downgraded LegalZoom.com, Inc. (NASDAQ: LZ) after the Company’s August 5, 2026 second-quarter release, and the stock declined as investors reacted to a reduced forward outlook. Shareholders who lost money on LZ are encouraged to submit their losses for review here or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.
The reported quarter did not drive the decline. LegalZoom reported revenue of approximately $205.3 million and adjusted earnings of $0.16 per share, exceeding consensus estimates. Instead, the market reacted to the Company’s reduced outlook.
For the third quarter, LegalZoom guided third-quarter revenue to approximately $194 million, below analyst expectations, and lowered full-year 2026 revenue guidance to approximately $795 million to $805 million from its prior range of $810 million to $830 million. The Company also announced a workforce reduction of approximately 13%. Following these disclosures, JPMorgan and William Blair downgraded LegalZoom, citing reduced growth visibility and concerns regarding the sustainability of the Company’s search-driven customer acquisition channel.
Investors who purchased LZ shares and suffered losses may request a no-cost claim evaluation , or call (212) 363-7500.
ABOUT THE FIRM — For over two decades, Levi & Korsinsky has represented shareholders in securities class actions. Ranked in ISS Top 50 for seven consecutive years.
Frequently Asked Questions About the LZ Investigation
Q: Who is conducting the LZ investigation? A: Levi & Korsinsky, LLP is investigating potential securities fraud claims on behalf of investors who purchased LZ securities. The firm is nationally recognized, ranked in the ISS Top 50 for seven consecutive years, and has recovered hundreds of millions of dollars for aggrieved investors.
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: Which statements are being investigated as potentially misleading? A: The investigation concerns whether LegalZoom.com, Inc. made materially false or misleading statements regarding its revenue outlook and customer acquisition trends. When the Company reduced full-year revenue guidance to approximately $795-$805 million and guided third-quarter revenue to $194 million, the stock price declined.
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: How long will the investigation take to resolve? A: The timeline depends on the facts developed during the investigation, the court schedule, and whether legal action is later pursued, resolved, or litigated further.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171
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SOURCE Levi & Korsinsky, LLP
