Why is Zscaler being investigated by securities lawyers?

Zscaler is being investigated after its stock price dropped sharply following weaker guidance and disclosures about sales leadership disruptions. Investors are examining whether the Company previously gave a misleading picture of its business and growth outlook.

Did Zscaler investors lose money after the May 2026 earnings report?

Yes. Zscaler shares fell more than 30% after the Company issued disappointing guidance and discussed issues affecting sales execution, causing significant losses for investors who bought stock before the announcement.

What caused Zscaler stock to crash in May 2026?

Zscaler stock fell after the Company issued weaker-than-expected future guidance and disclosed problems tied to changes in its sales leadership, raising investor concerns about slowing growth and execution risks.

Is there a class action lawsuit against Zscaler, Inc.?

Law firms are investigating potential securities fraud and class action claims against Zscaler. Investors may be able to participate if a securities class action lawsuit is filed or already pending in federal court.

What is the Zscaler securities investigation about?

The investigation focuses on whether Zscaler misled investors about its business performance, sales operations, growth prospects, or internal issues before the Company’s stock price declined sharply.

Can I join the Zscaler investigation if I lost money on ZS stock?

Investors who purchased Zscaler stock and suffered losses after the May 2026 disclosures may be eligible to participate in a securities investigation or potential class action lawsuit.

Did Zscaler hide problems with its sales organization?

Investigators are examining whether Zscaler failed to disclose important issues involving sales leadership changes or execution problems that may have negatively affected the Company’s future outlook.

Why are law firms investigating Zscaler after earnings?

Law firms often investigate companies after major stock drops to determine whether investors were misled by false statements, omitted information, or overly optimistic business guidance.

What is a securities class action lawsuit against Zscaler?

A securities class action is a lawsuit brought on behalf of investors who allegedly lost money because a company made false or misleading statements that artificially inflated its stock price.

How do I know if I qualify for the Zscaler class action?

You may qualify if you purchased Zscaler stock during the relevant period and experienced losses after the Company’s disclosures caused the stock price to decline significantly.

What does Rule 10b-5 mean in the Zscaler investigation?

Rule 10b-5 is a federal securities law that prohibits companies from making false or misleading statements to investors or omitting important facts that could affect investment decisions.

What happens if a securities class action against Zscaler succeeds?

If the case is successful, eligible investors may recover a portion of their financial losses through a settlement or court judgment against the Company or responsible individuals.

Do I have to pay upfront to join a Zscaler securities case?

Most securities class action law firms handle these cases on a contingency basis, meaning investors generally do not pay upfront legal fees to participate in the litigation.

What is a lead plaintiff in a securities class action?

A lead plaintiff is an investor appointed by the court to represent other shareholders in a securities class action and help oversee the litigation on behalf of the class.

How long do securities class action lawsuits usually take?

Securities class actions can take several months or years depending on the complexity of the claims, motions filed by defendants, discovery, settlement negotiations, or trial proceedings.

Zscaler, Inc. - Faruqi & Faruqi LLP

Zscaler, Inc.

Join Action

If you are a Zscaler investor who suffered a loss and would like to learn more, you can provide your information below:

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Significant Losses In Zscaler To Contact Him Directly To Discuss Their Options

If you suffered significant losses in Zscaler stock or options and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Zscaler, Inc. (“Zscaler” or the “Company”) (NASDAQ: ZS).

STOCK DROP: 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.

Call Partner Josh Wilson at 877-247-4292 or 212-983-9330 (Ext. 1310)
Or submit your information below to learn about your rights.

Join Action

Zscaler, Inc.

Monetary Losses ($) *

Website URL

First Name *

Last Name *

Telephone *

Email *

Street Address

City

State

Zip Code

Purchases

1	Purchases Options Price per Share Date # of Shares Principal Amount Amount Paid Series or Cusip # of Contracts Price per Contract Exercise Price Expiration Date
1	Purchases Options Price per Share Date # of Shares Principal Amount Amount Paid Series or Cusip # of Contracts Price per Contract Exercise Price Expiration Date

Add Row

Sales

1	Sales Options Price per Share Date # of Shares Principal Amount Amount Paid Series or Cusip # of Contracts Price per Contract Exercise Price Expiration Date
1	Sales Options Price per Share Date # of Shares Principal Amount Amount Paid Series or Cusip # of Contracts Price per Contract Exercise Price Expiration Date

Add Row

Upload your trades here:

Accepted file types: xls, xlsx, doc, docx, pdf, jpg, jpeg, png, Max. file size: 50 MB, Max. files: 5.
You may redact account numbers from your uploaded documents.

File name:

File size:

Select File

Does not establish an attorney-client relationship *

By clicking this box, I acknowledge that this form is not intended to and does not establish an attorney-client relationship between myself and Faruqi & Faruqi LLP, and that the submission or receipt of information via this form, e-mail or telephone does not create an attorney-client relationship.

Case

Users to notify