Please complete this form relating to your transactions for Zillow Group, Inc. (NASDAQ: ZG; Z) securities between August 5, 2021, to November 2, 2021, both dates inclusive (the "Class Period").
You may also contact James Maro, Esq. (484) 270-1453; or you may submit your information via email at firstname.lastname@example.org; or you may click here to print a PDF of this form.
Kessler Topaz Meltzer & Check, LLP has filed a class action lawsuit on behalf of those who purchased or acquired Zillow Group, Inc. (“Zillow” or the “Company”) (NASDAQ: ZG; Z) securities during the period from August 5, 2021, to November 2, 2021, inclusive (the “Class Period”).
Zillow, a Washington corporation with principal executive offices in Seattle, Washington, is a real estate services company that operates popular real estate websites including Zillow and Trulia. In addition to the generation of advertising revenue from these websites, Zillow earns referral fees when matching prospective buyers and sellers with real estate agents and brokers. Since April 2018, Zillow has also operated its Zillow Offers program, through which Zillow directly purchases homes from sellers, makes certain repairs and updates to these properties, and subsequently resells the homes to purchasers.
The Class Period commences on August 5, 2021, when Zillow reported its second quarter 2021 earnings. In the report, Zillow lauded the strong demand for Zillow Offers, claimed that higher volumes were the result of improvements in the Company’s algorithm, and told investors that it had made “durable” operational improvements to lower renovation costs. Thereafter, and throughout the Class Period, Zillow continued to tout the strength and sustainability of its Zillow Offers business.
Investors began to learn the truth about the Defendants’ false and/or misleading statements on October 4, 2021, when analysts from RBC Capital lowered their price target for Zillow, warning that Zillow Offers would likely miss quarterly expectations. Following this news, the price of Zillow common stock (ZG) declined $5.72 per share, or more than 6%, from a close of $91.40 per share on October 1, 2021, to close at $85.68 per share on October 4, 2021. Similarly, the price of Zillow capital stock (Z) declined $4.98 per share, or approximately 5.5%, from a close of $90.36 per share on October 1, 2021, to close at $85.38 per share on October 4, 2021.
Then, on October 18, 2021, Zillow delivered the first of two completely unexpected blows to investors in announcing that “[d]ue to a backlog in renovations and operational capacity constraints,” Zillow Offers “will not sign any new, additional contracts to buy homes through the end of the year.” Following this news, the price of Zillow common stock (ZG) declined $8.84 per share, or more than 9%, from a close of $94.30 per share on October 15, 2021, to a close of $85.46 per share on October 18, 2021. Similarly, the price of Zillow capital stock (Z) declined $8.97 per share, or more than 9%, from a close of $94.97 per share on October 15, 2021, to a close of $86.00 per share on October 18, 2021.
On November 1, 2021, media outlets reported that, pursuant to a detailed analysis by KeyBanc, most of the homes in Zillow Offers inventory were now worth less than Zillow paid for them, and that Zillow was looking to sell off 7,000 homes. Following this news, the price of Zillow common stock (ZG) declined $20.14 per share over two trading days, or more than 19%, from a close of $105.72 per share on October 29, 2021, to close at $85.48 per share on November 2, 2021. Similarly, the price of Zillow capital stock (Z) declined $16.43 per share, or nearly 16%, from a close of $103.63 per share on October 29, 2021, to close at $87.20 per share on November 2, 2021.
Finally, after the market close on November 2, 2021, Zillow released its third quarter 2021 financial results and announced that it was “winding down” the Zillow Offers program. In doing so, Zillow revealed that it would need to take writedowns of approximately $569 million and would be reducing its workforce by 25%. Following this news, the price of Zillow common stock (ZG) fell an additional $19.62 per share, or approximately 23%, to close at $65.86 per share on November 3, 2021. Similarly, the price of Zillow capital stock (Z) fell $21.73 per share, or approximately 25%, to close at $65.47 per share on November 3, 2021.
The complaint alleges that, throughout the Class Period, the Defendants made false and misleading statements and failed to disclose that: (1) despite operational improvements, Zillow experienced significant unpredictability in forecasting home prices for its Zillow Offers business; (2) such unpredictability, as well as labor and supply shortages, led to a backlog of inventory; (3) as a result, Zillow was reasonably likely to wind down its Zillow Offers business, which would have a material adverse impact on its financial results; and (4) consequently, defendants’ positive statements about Zillow’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453; or via e-mail at email@example.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.