Levi & Korsinsky Announces Investigation of Securities Claims Against LegalZoom.com, Inc. (LZ)

NEW YORK CITY, NY / ACCESS Newswire / August 10, 2026 / Levi & Korsinsky notifies investors that it has commenced an investigation into LegalZoom.com, Inc. ("LegalZoom.com, Inc.") (NASDAQ:LZ) concerning potential violations of the federal securities laws.

LegalZoom.com, Inc. shares fell after the Company's August 5 second-quarter release, in which management lowered full-year revenue guidance to approximately $795-$805 million from a prior range of $810-$830 million and disclosed a workforce reduction of roughly 13%.

The reported quarter itself was not the problem. LegalZoom posted revenue of approximately $205.3 million, essentially in line, and adjusted EPS of $0.16 against $0.15 expected. The damage came from the forward outlook: third-quarter revenue was guided to $194 million, below analyst estimates.

Management attributed the reset to weaker business-formation activity as declining Google search traffic reduced customer acquisition, with AI-generated answers replacing clicks and paid search becoming more expensive and less efficient. The Company's AI and partner channels were described by analysts as not yet sufficient to offset the shortfall. JPMorgan and William Blair both downgraded LZ following the release, citing reduced growth visibility and search-channel uncertainty.

If you suffered a loss on your LegalZoom.com, Inc. securities and would like to explore a potential recovery under the federal securities laws, Learn More About the Investigation or contact Joseph E. Levi, Esq. via email at [email protected] or call (212)363-7500 to speak to our team of experienced shareholder advocates.

WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States. Attorney Advertising. Prior results do not guarantee similar outcomes.

CONTACT:

Levi & Korsinsky, LLP

Joseph E. Levi, Esq.

Ed Korsinsky, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

[email protected]

Tel: (212)363-7500

Fax: (212)363-7171

SOURCE: Levi & Korsinsky, LLP