Robbins Umeda LLP Announces an Investigation of Zillow, Inc. on behalf of Zillow Shareholders
Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors of Zillow, Inc. (NASDAQ: Z).
Robbins Umeda LLP is investigating allegations that certain officers and directors of Zillow breached their fiduciary duties to shareholders by permitting and failing to correct insufficient controls and improper procedures that led to the disclosure of false and/or misleading statements. In particular, the firm is investigating whether the company concealed the difficulties Zillow faced attracting new real estate agents as subscribers, its existing subscriber churn, and cancellations. As a result, Zillow’s stock traded at artificially inflated prices, reaching a high of $46.17 per share on September 20, 2012. While Zillow’s stock price was artificially inflated, company insiders were able to sell 3.1 million shares of Zillow stock for approximately $115 million.
On November 5, 2012, Zillow announced its third quarter 2012 financial results, and reduced its fourth quarter and full revenue guidance, revealing revenue expectations below analysts’ estimates. Further, Zillow announced that its estimates of home valuation had lost a large display advertiser, Foreclosure.com, leading to an expected weakness in the Company’s display advertising business. On this news, Zillow stock declined 18%, or $6.22 per share, to close at $28.15 on November 6, 2012.
Zillow shareholders have the option to file a shareholder derivative action against the company to secure the best possible price for shareholders and the disclosure of material information so shareholders can vote on the transaction in an informed manner.
Zillow shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Darnell R. Donahue at (800) 350-6003.