Zscaler Faces Securities Fraud Investigation by Pomerantz Law Firm
Pomerantz LLP is investigating potential securities fraud or other unlawful business practices involving Zscaler, Inc. (NASDAQ: ZS) and its officers or directors on behalf of investors. The investigation follows two significant stock price declines linked to earnings guidance below expectations in May 2026 and the departure of Chief Revenue Officer Mike Rich in September 2026. Zscaler's Q3 fiscal year revenue exceeded forecasts, but it guided for current-quarter revenue between $875 million to $878 million—below the expected $879 million. This led to a sharp drop in its stock price by over 31%. In September, another decline of nearly 10% followed Rich's departure. Pomerantz LLP is one of the leading firms specializing in corporate and securities litigation. The firm has secured multimillion-dollar damages awards for class members in past cases.
Tickers: $ZS
Topics: class action lawsuit executive departure securities fraud stock price drop