Faruqi & Faruqi, LLP announced an investigation into Zscaler, Inc. on July 11, 2026. The investigation follows Zscaler's May 27, 2026, disclosures. These disclosures included weaker-than-expected guidance and sales leadership disruptions.
Zscaler's stock fell 31.52% to $126.41 per share following the May announcement. This marked its most significant single-day decline since its public offering. The firm is examining whether Zscaler misled investors. This includes scrutiny of its growth outlook, sales execution, and customer expansion trends prior to the negative guidance.