On May 27, 2026, the Company issued weaker-than-expected guidance and disclosed disruptions tied to sales leadership changes, despite reporting quarterly results that exceeded analyst expectations. Reports indicated that investors were concerned about slowing growth projections, weaker customer expansion, and uncertainty surrounding the Company's sales execution and outlook. Following this news, Zscaler's stock suffered its steepest single-day decline since going public.
On this news, Zscaler's stock price fell $58.19, or 31.52% to close at $126.41 per share on May 27, 2026.
To learn more about the Zscaler investigation, go to www.faruqilaw.com/ZS or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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Frequently Asked Questions (FAQ) for Investors Regarding the Zscaler Securities Investigation:
What is the Zscaler securities investigation about?
The investigation concerns whether Zscaler misled investors regarding its growth outlook, sales execution, customer expansion trends, and the impact of sales leadership changes before issuing weaker-than-expected guidance.
Who may be eligible to participate in the investigation?
Investors who purchased Zscaler (NASDAQ: ZS) stock or options and suffered losses, particularly following the May 27, 2026 stock decline, may have legal rights and should evaluate their options.
What is a lead plaintiff, and how can I seek appointment?
If a securities class action is filed, a lead plaintiff represents the interests of other investors and helps oversee the litigation. Eligible investors may seek appointment by filing a motion before any court-imposed deadline.
Why should investors contact Faruqi & Faruqi, LLP?
Faruqi & Faruqi, LLP has represented investors in securities litigation for decades and has recovered hundreds of millions of dollars for shareholders. Investors who purchased Zscaler securities may contact the firm to discuss their legal rights and potential claims at no cost or obligation.
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SOURCE Faruqi & Faruqi, LLP
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