Zillow Group, Inc. (Z, ZG) Misled Investors Regarding its Ability to Forecast Home Prices for its Zillow Offers Business
A class action was filed on behalf of all persons and entities that purchased Zillow Group, Inc. (NASDAQ: Z, ZG) securities between February 10, 2021 and November 2, 2021. The complaint alleges violations of the Securities Exchange Act of 1934. Zillow operates an online real estate information marketplace.
According to the complaint, Zillow, through “Zillow Offers,” overextended itself with excess inventory. Specifically, Zillow first announced the suspension of new contracts through 2021, citing “a backlog in renovations and operational capacity restraints.” Then, Zillow announced it would wind down Zillow Offers because “the unpredictability in forecasting home prices far exceeds what we anticipated and continuing to scale Zillow Offers would result in too much earnings and balance-sheet volatility.” This will result in significant financial loss to the company, as well as a reduction in Zillow’s workforce by 25%. Shares of Zillow’s stock fell on this news, harming investors.
If you purchased shares of Zillow Group, Inc. (Z, ZG) securities between February 10, 2021 and November 2, 2021, you have until January 18, 2022, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.