INVESTOR ALERT: Kirby McInerney LLP Announces the Filing of a Securities Class Action on Behalf of Zillow Group, Inc. (Z, ZG) Investors
NEW YORK, Nov. 17, 2021 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Western District of Washington on behalf of those who acquired Zillow Group, Inc. (“Zillow” or the “Company”) (NASDAQ: Z, ZG ) securities from February 10, 2021 through November 2, 2021, inclusive (the “Class Period”). Investors have until January 18, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Zillow is a real estate company that purports to offer customers an on-demand experience for selling, buying, renting or financing with transparence.
On October 18, 2021, the Company announced that Zillow Offers suspended signing of new contracts through 2021 and would focus on its current inventory, citing “a backlog in renovations and operational capacity constraints[.]” Zillow claimed that “[p]ausing new contracts will enable us to focus on sellers already under contract with us and our current home inventory.” On this news, Zillow’s Class A share price declined by $8.84 per share, or approximately 9.4%, from $94.30 per share to close at $85.46 per share on October 18, 2021, and Zillow’s Class C share price declined by $8.97 per share, or approximately 9.4%, from $94.97 per share to close at $86.00 per share on October 18, 2021.
Then, on November 2, 2021, Zillow announced that it was winding 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.” As a result, third quarter 2021 financial results included a $304 million inventory write-down, and the Company further expected “an additional $240 million to $265 million of losses to be recognized in Q4.” On this news, Zillow’s Class A share price declined by $19.62 per share, or approximately 23%, from $85.48 per share to close at $65.86 per share on November 3, 2021, and Zillow’s Class C share price declined by $21.73 per share, or approximately 24.9%, from $87.20 per share to close at $65.47 per share on November 3, 2021.
The lawsuit alleges throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that, despite operational improvements, the Company experienced significant unpredictability in forecasting home prices for its Zillow Offers business; (2) that such unpredictability, as well as labor and supply shortages, led to a backlog of inventory; (3) that, as a result of the foregoing, the Company was reasonably likely to wind-down its Zillow Offers business, which would have a material adverse impact on its financial results; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased or otherwise acquired Zillow securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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