On July 9, 2024, after the market closed, LegalZoom issued a press released entitled “LegalZoom Announces Leadership Transition.” The press release stated “the Company’s current Chairman of the Board of Directors, Jeffrey Stibel, has been named LegalZoom’s next CEO, effective immediately. LegalZoom has also appointed John Murphy as the Lead Independent Director of the Board. As part of this transition, current Chief Executive Officer Dan Wernikoff will be departing the Company, including resigning from the Board.” In addition, the press release stated a reduction in “its revenue expectation for the full year to a range of $675 million to $685 million and its free cash flow expectation for the full year to a range of $75 million to $85 million.”
On this news, LegalZoom’s stock fell $1.99 per share, or 25%, to close at $5.86 per share on July 10, 2024.
