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Investigation Details
On July 9, 2024, after market close, LegalZoom announced the resignation and replacement of its current Chief Executive Officer. According to the announcement, “The Board and Mr. Wernikoff decided that now is the right time for this transition, as the Company increases its focus on shifting towards subscription-based revenue to drive long-term profitable growth.” LegalZoom also disclosed a reduction in revenue guidance for the full year from a range of $700 million to $720 million to a range of $675 million to $685 million.
LegalZoom’s stock price opened at $5.36 per share on July 10, 2024, down approximately 30% from its market closing price of $7.85 per share on July 9, 2024.
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