Philadelphia, Pennsylvania--(Newsfile Corp. - December 8, 2021) - Berger Montague is investigating securities fraud allegations on behalf of investors who purchased the securities of Zillow Group, Inc. (NASDAQ: Z) (NASDAQ: ZG) ("Zillow" or the "Company") between February 10, 2021 and November 2, 2021 (the "Class Period").
If you purchased Zillow securities during the Class Period, would like to discuss Berger Montague's investigation, or have questions concerning your rights or interests, please contact attorneys Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015, or Michael Dell'Angelo at mdellangelo@bm.net or (215) 875-3080, or visit: https://bergermontague.com/cases/berger-montague-investigates-securities-fraud-against-zillow/.
Whistleblowers: Anyone with non-public information regarding Zillow is encouraged to confidentially assist Berger Montague's investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.
According to a recently filed complaint, throughout the Class Period, Defendants failed to disclose to investors that Zillow had experienced significant unpredictability in forecasting home prices for its Zillow Offers business, and that such unpredictability, in conjunction with labor and supply shortages, led to a backlog of inventory.
On October 18, 2021, the Company announced that it had suspended the signing of new Zillow Offers contracts through 2021 in order to focus on existing inventory, citing "a backlog in renovations and operational capacity restraints." On this news, Zillow's Class A share price fell $8.84, or 9.4%, to close at $85.46 per share on October 18, 2021, and Class C share price fell $8.97, or 9.4%, to close at $86.00 per share on October 18, 2021.
Then, on November 2, 2021, Zillow announced that it would wind-down Zillow Offers on account of "the unpredictability in forecasting home prices," and that the Company was writing down $304 million of inventory in the Q3 2021. The Company further stated that it anticipates an additional $240 million to $265 million of losses to be recognized in Q4 primarily on homes it expects to purchase in Q4. The Zillow Offers wind-down was expected to take several quarters and will include a reduction of Zillow's workforce by approximately 25%.
On this news, Zillow's Class A share price fell $19.62, or 23%, to close at $65.86 per share on November 3, 2021, and Class C share price fell $21.73, or 25%, to close at $65.47 per share on November 3, 2021.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Contacts
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net
Michael Dell'Angelo, Executive Shareholder
Berger Montague
(215) 875-3080
mdellangelo@bm.net
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/107075
