ZILLOW ALERT: Bragar Eagel & Squire, P.C. Reminds Investors that a Class Action Lawsuit Has … | News

NEW YORK, Dec. 24, 2021 (GLOBE NEWSWIRE) – Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, reminds investors that a class action lawsuit against Zillow Group, Inc. (“Zillow” or the “Company”) (NASDAQ: Z) in the United States District Court for the Western District of Washington on behalf of all natural persons and legal entities who purchased or otherwise acquired Zillow securities between February 10, 2021 and November 2, 2021, inclusive ( the “class period”). Investors have until January 15, 2022 to apply to the court for appointment as lead plaintiff in the litigation.

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Zillow is a real estate company that aims to provide its customers with an on-demand experience for selling, buying, renting or financing with transparency.

On October 18, 2021, the company announced that Zillow Offers is suspending signing of new contracts until 2021 and will focus on its current portfolio, citing “a backlog of renovations and operating capacity constraints”.[.]”Zillow claimed that”[p]New contracts allow us to focus on sellers who are already under contract with us and our current housing stock. ”Given the news, Zillow’s Class A share price fell $ 8.84 per share, or about 9.4 % from $ 94.30 per share to $ 85.46 per share on October 18, 2021, and Zillow’s Class C price fell $ 8.97 per share, or approximately 9.4% from $ 94.97 per share until the closing price of $ 86.00 per share on October 18, 2021.

Then, on November 2, 2021, Zillow announced that it would be discontinuing 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, financial results for the third quarter of 2021 included an inventory write-off of $ 304 million, and the company continued to expect “additional losses of $ 240 million to $ 265 million to be recognized in the fourth quarter.”

In light of this news, Zillow’s Class A share price declined $ 19.62 per share, or approximately 23%, from $ 85.48 per share to $ 65.86 per share on the 3rd, 24.9% from 87.20 Per share up to the closing price of $ 65.47 per share on November 3, 2021.

The lawsuit alleges that defendants made materially false and / or misleading information and failed to disclose material adverse facts about the business, operations and prospects of the company during the class action period. In particular, Defendants did not disclose to investors: (1) that, despite operational improvements, the company experienced significant unpredictability in forecasting house prices for its Zillow Offers business; (2) that this unpredictability, as well as labor and supply shortages, resulted in a backlog in inventory levels; (3) that due to the foregoing, the Company would be reasonably likely to wind up its Zillow Offers business, which would have a material adverse effect on its financial results; and (4) that, based on the foregoing, Defendants’ positive statements about the Company’s business, operations and prospects were materially misleading and / or improperly based.

If you have bought or otherwise acquired Zillow stock and have suffered a loss, are a long-term shareholder, have information, want to learn more about these claims, or have any questions about this release or your rights or interests relating thereto, please contact Brandon Walker or Alexandra Raymond by email at [email protected], by phone at (212) 355-4648 or fill out this contact form. There are no costs or obligations for you.

About Bragar Eagle & Squire, PC:

Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. More information about the company can be found at www.bespc.com. Lawyer advertising. Previous results do not guarantee similar results.

Contact information:

Bragar Eagle & Squire, PC Brandon Walker, Esq. Alexandra B. Raymond, Esq. (212) 355-4648 [email protected]

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