GlobeNewswire Inc | Jan 6, 2022 07:00PM EST

January 07, 2022

RADNOR, Pa., Jan. 06, 2022 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP informs investors that the firm has filed a securities class action lawsuit against Zillow Group, Inc. (Zillow) on behalf of investors who purchased or acquired Zillow (NASDAQ: ZG; Z) securities between August 7, 2020, and November 2, 2021, inclusive (the Class Period). This action, captioned Aaron Winston Hillier v. Zillow Group, Inc., et al., Case No. 2:22-cv-00014 (the Hillier Action), was filed in the United States District Court for the Western District of Washington.

There are two other related class action cases pending against Zillow in the United States District Court for the Western District of Washington. That first-filed action issued a notice of its filing pursuant to the federal securities laws which triggered the deadline of January 18, 2022, for any investors who purchased Zillow securities to seek to be appointed as a lead plaintiff representative of the class. The filing of the Hillier Action does not change the January 18, 2022 lead plaintiff deadline.

CLICK HERE TO SUBMIT YOUR ZILLOW LOSSES

LEAD PLAINTIFF DEADLINE:January 18, 2022

CONTACT AN ATTORNEY TO DISCUSS YOUR RIGHTS James Maro, Esq. (484) 270-1453 or Toll Free (844) 887-9500 or Email atinfo@ktmc.com

ZILLOWS MISCONDUCTZillow, 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 companys 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 Zillows financial results; and (4) as a result of the foregoing, the defendants positive Class Period statements about Zillows business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

WHAT CAN I DO?Zillow investors may, no later than January 18, 2022 seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Zillow investors who have suffered significant losses to contact the firm directly to acquire more information.

CLICK HERE TO SIGN UP FOR THE CASE

WHO CAN BE A LEAD PLAINTIFF?A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.

ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. At the end of the day, we have succeeded if the bad guys pay up, and if you recover your assets.

For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.

CONTACT:Kessler Topaz Meltzer & Check, LLPJames Maro, Jr., Esq.280 King of Prussia RoadRadnor, PA 19087(844) 887-9500 (toll free)info@ktmc.com