Please complete this form relating to your transactions for Zillow Group, Inc. (NASDAQ: ZG; Z) securities between August 7, 2020 and November 2, 2021, both dates inclusive (the "Class Period").
You may also contact James Maro, Esq. (484) 270-1453; or toll free at (844) 887-9500; 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.
Zillow investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than January 18, 2022 move the Court to serve as lead plaintiff of the class, if you so choose.
Kessler Topaz Meltzer & Check, LLP has filed a class action lawsuit on behalf of those who purchased or acquired Zillow Group, Inc. ("Zillow") (NASDAQ: ZG; Z) securities between August 7, 2020 and November 2, 2021, both dates 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 7, 2020, the day after Zillow published its second quarter 2020 financial results after the market closed on August 6, 2020. In connection with its quarterly results, Zillow reported that “quarterly revenue grew 28% year over year to $768 million, driven primarily by a continued increase in Zillow Offers resale volume.” Critically, the company explained that while “Zillow Offers entered Q2 with home acquisitions temporarily paused due to market uncertainty” resulting from the COVID-19 pandemic, “[d]uring the quarter, the company sold 1,437 homes and purchased 86 homes through Zillow Offers, ending Q2 with 440 homes in inventory” and “is now actively purchasing homes in all 24 markets where it previously operated.”
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.
Finally, after the market closed 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 Hillier Action alleges that, throughout the Class Period, the defendants repeatedly, falsely touted the strength and sustainability of the company’s Zillow Offers business and failed to disclose to investors that: (1) Zillow knew that it did not have the ability to properly price homes for its Zillow Offers business; (2) this inability, in addition to labor and supply shortages, resulted in a backlog of inventory in the Zillow Offers business; (3) as a result of the foregoing, Zillow was reasonably likely to wind-down its Zillow Offers business, which would have a material adverse impact of Zillow’s financial results; and (4) as a result of the foregoing, the defendants positive Class Period statements about Zillow’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
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; toll-free at (844) 887-9500; 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.