NEW YORK, December 29, 2021 / PRNewswire / – Pomerantz LLP announces that a class action lawsuit has been filed against Zillow Group, Inc. (âZillowâ or the âCompanyâ) (NASDAQ: Z; ZG) and certain of its officers. The class action, filed in United States District Court of the Western District of Washington, Seattle Division, and registered as 21-cv-01567, is on behalf of a class consisting of all persons and entities other than Defendants who have purchased or otherwise acquired Zillow Securities between February 10, 2021 and November 2, 2021, inclusive (the âRemedy Periodâ). The plaintiff is pursuing actions against the defendants under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased securities of Zillow during the Class Period, you have up to January 18, 2022 ask the court to appoint you as the principal plaintiff for the group. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll free, Ext. 7980. Those inquiring by e-mail are encouraged to provide their mailing address, telephone number and the number of shares purchased.
[Click here for information about joining the class action]
Zillow is a real estate company that claims to offer customers “an on-demand experience to sell, buy, rent or finance seamlessly.” The company’s “Zillow Deals” business “buys and sells homes directly in dozens of markets across the country, allowing sellers to control their timing.”
The complaint alleges that, throughout the Class Period, the Defendants made materially false and / or misleading statements, and failed to disclose material adverse facts regarding the business, operations and prospects of the Company. Specifically, the Defendants failed to disclose to investors that: (i) despite operational improvements, the Company experienced significant unpredictability in forecasting house prices for its Zillow Offers business; (ii) such unpredictability, along with labor and supply shortages, resulted in backlogs; (iii) as a result of the foregoing, the Company was reasonably likely to terminate its Zillow offerings activities, which would have a material adverse impact on its financial results; and (iv) as a result of the foregoing, the Defendants’ positive statements regarding the business, operations and prospects of the Company were materially misleading and / or lacked reasonable basis.
At October 18, 2021, the company announced that Zillow Offers is suspending signing new contracts until 2021 and will focus on its current inventory, citing “a backlog of renovations and restrictions on operational capacity.” Zillow asserted that “[p]Using new contracts will allow us to focus on sellers already under contract with us and our current home inventory. “
On this news, Zillow’s Class A share price fell $ 8.84, or 9.4%, to close at $ 85.46 per share on October 18, 2021, and Zillow’s Class C share price fell $ 8.97, or 9.4%, to close at $ 86.00 per share on October 18, 2021, on an unusually high volume of transactions.
Then on November 2, 2021, after the market closed, Zillow announced that it would end Zillow Offers because “the unpredictability of home price predictions far exceeds what we expected and continuing to move Zillow Offers will result in too much profit and balance sheet volatility “. Therefore, the financial results for the third quarter of 2021 included “an inventory write-down of approximately $ 304 million in the home segment due to the purchase of homes in the third quarter at prices higher than the [C]the company’s current estimates of future selling prices.[C]The company also expects a $ 240 million at $ 265 million losses to be recognized in the fourth quarter, mainly on homes it plans to buy in the fourth quarter. The “resolution is expected to take several quarters and will include a Zillow downsizing of approximately 25%.” “
On this news, Zillow’s Class A share price fell $ 19.62, or 23%, to close at $ 65.86 per share on November 3, 2021, on an unusually high volume of transactions. Zillow’s Class C share price fell $ 21.73, or 25%, to close at $ 65.47 per share on November 3, 2021, on an unusually high volume of transactions.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is recognized as one of the leading firms in the areas of corporate, securities and antitrust litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class actions bar, Pomerantz was a pioneer in the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he established, fighting for the rights of victims of securities fraud, breach of fiduciary duty and professional misconduct. The firm has recovered numerous multi-million dollar damages on behalf of the members of the group. See www.pomlaw.com.
Robert S. Willoughby
888-476-6529 ext 7980
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SOURCE Pomerantz LLP