SHARHEOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Zillow Group, Inc. of Class Action Lawsuit and Upcoming Deadline
NEW YORK, Dec 2, 2021 / PRNewswire / – Pomerantz LLP announces that a class action lawsuit has been filed against Zillow Group, Inc. (“Zillow” or the “Company”) (NASDAQ: Z; ZG) and some of its officers. The class action filed in The United States District Court for the Western District of Washington, Seattle Division, and registered under 21-cv-01567, acts on behalf of a group consisting of all persons and entities other than the defendant, the Zillow securities between. bought or otherwise acquired February 10, 2021 and November 2, 2021, including (the “Class Period”). Plaintiff is pursuing claims against defendants under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who has purchased Zillo securities during the Class Action Period, you will have until January 18, 2022 ask the court to appoint you as the lead plaintiff for the class action. A copy of the complaint is available 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, extension. 7980. Inquiries by email are encouraged to include their postal 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 purports to offer its customers “an on-demand sell, buy, rent, or finance experience with transparency”. The company’s Zillow Offers business “buys and sells homes directly in dozens of markets across the country so sellers are in control of their schedules.”
The lawsuit alleges that, during the class action period, defendants made materially false and / or misleading statements and failed to disclose material adverse facts about the company’s business, operations and prospects. In particular, Defendants did not disclose to investors that: (i) the Company experienced significant unpredictability in forecasting house prices for its Zillow Offers business despite operational improvements; (ii) this unpredictability, labor and supply shortages resulted in a backlog in inventory levels; (iii) based on the foregoing, it was reasonably likely that the Company would liquidate its Zillow Offers business, which would have a material adverse effect on its financial results; and (iv) as a result of the foregoing, Defendants’ positive statements about the business, operations and prospects of the Company were materially misleading and / or unfounded.
on October 18, 2021, the company announced that Zillow Offers is on hold until 2021 from signing new contracts and will focus on its current portfolio, citing “a backlog of renovations and operating capacity constraints.” Zillow claimed that “[p]The conclusion of new contracts will allow us to focus on sellers who are already under contract with us and on our current housing stock. ”
As a result of this news, the price of Zillow’s Class A share fell $ 8.84, or 9.4% to close at $ 85.46 per share October 18, 2021, and Zillow’s Class C stock fell $ 8.97, or 9.4% to close at $ 86.00 per share October 18, 2021, with unusually high trading volumes.
Then, on November 2, 2021, after the market closed, Zillow announced that it would discontinue Zillow Offers because “the unpredictability of forecasting house prices far exceeds our expectations and further scaling Zillow Offers would lead to high income and balance sheet volatility.” As a result, the financial results for the third quarter of 2021 included “an inventory write-down of approx $ 304 million in the home segment by buying homes in the third quarter at higher prices than in [C]the company’s current estimates of future sales prices.[C]Company continues to expect an additional $ 240 million to $ 265 million the fourth quarter of losses will primarily be recorded on homes due for purchase in the fourth quarter. “The downsizing is expected to take several quarters and include a reduction in Zillow’s workforce of approximately 25%.”
As a result of this news, the price of Zillow’s Class A share fell $ 19.62, or 23% to close around $ 65.86 per share November 3, 2021, with unusually high trading volumes. Zillow’s C share price has fallen $ 21.73, or 25% to close around $ 65.47 per share November 3, 2021, with unusually high trading volumes.
Pomerantz LLP, with offices in new York, Chicago, The angel, Paris, and Tel Aviv, is recognized as one of the leading law firms in corporate, securities and antitrust litigation. Founded by the late Abraham L. PomerantzKnown as the Dean of the Class Action Chamber, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz is continuing the tradition he founded and fighting for the rights of victims of securities fraud, breach of duty of loyalty and corporate misconduct. The company has collected numerous millions of dollars in damages on behalf of class members. See www.pomlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980
SOURCE Pomerantz LLP