NEW YORK, Dec. 30, 2021 /PRNewswire/ -- Bernstein Liebhard, a nationally acclaimed investor rights law firm, reminds investors of the deadline to file a lead plaintiff motion no later than January 18, 2022 in a securities class action lawsuit that has been filed on behalf of investors who purchased or acquired the securities of Zillow Group, Inc. ("Zillow") (NASDAQ: Z, ZG) between February 10, 2021 and November 2, 2021, inclusive (the "Class Period"). The lawsuit was filed in the United States District Court for the Western District of Washington and alleges violations of the Securities Exchange Act of 1934.
If you purchased or otherwise acquired Zillow securities, and/or would like to discuss your legal rights and options, please visit Zillow Group Inc. Shareholder Class Action Lawsuit or contact Joe Seidman toll free at (877) 779-1414 or seidman@bernlieb.com.
Zillow is a real estate company that purports to offer customers "an on-demand experience for selling, buying, renting or financing with transparence." The Company's "Zillow Offers" business "buys and sells homes directly in dozens of markets across the country, allowing sellers control over their timeline."
According to the complaint, Defendants made false and/or misleading statements and, among other things, 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; and (3) 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.
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 restraints." 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 fell $8.84, or 9.4%, to close at $85.46 per share on October 18, 2021, and Zillow's 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, after the market closed, Zillow announced that it would wind-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, Zillow's third quarter 2021 financial results included "a write-down of inventory of approximately $304 million within the Homes segment as a result of purchasing homes in Q3 at higher prices than the company's current estimates of future selling prices." Moreover, the "company further expects an additional $240 million to $265 million of losses to be recognized in Q4 primarily on homes it expects to purchase in Q4." The "wind-down is expected to take several quarters and will include a reduction of Zillow's workforce by approximately 25%." Zillow's Class A share price fell $19.62, or 23%, to close at $65.86 per share on November 3, 2021, on unusually heavy trading volume. Zillow's Class C share price fell $21.73, or 25%, to close at $65.47 per share on November 3, 2021, on unusually heavy trading volume.
If you wish to serve as lead plaintiff, you must move the Court no later than January 18, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased or otherwise acquired Zillow securities, and/or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/zillowgroupinc-z-zg-shareholder-lawsuit-class-action-fraud-stock-457/ or contact Joe Seidman toll free at (877) 779-1414 or seidman@bernlieb.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.
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Contact Information:
Joe Seidman
Bernstein Liebhard LLP
https://www.bernlieb.com
(877) 779-1414
seidman@bernlieb.com
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