Shareholder rights law firm Robbins LLP informs investors of Zillow Group, Inc. (NASDAQ: Z, ZG) that the class action complaint filed against the Company survived defendants' motion to dismiss.
The complaint, filed on behalf of shareholders who purchased Zillow securities between February 10, 2021 and November 2, 2021, alleged that the Company, through "Zillow Offers," overextended itself with excess inventory. Specifically, Zillow first announced the suspension of new contracts through 2021, citing "a backlog in renovations and operational capacity restraints." Then, Zillow announced 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 incurred significant financial loss, and had to reduce its workforce by 25%.
On December 7, 2022, Judge Thomas S. Zilly denied defendants' motion to dismiss, with the exception of the allegations set forth in paragraph 192, which he dismissed with leave to amend. As a result, the lawsuit against Zillow will continue.
What Now: If you own shares of Zillow Group, Inc. (Z, ZG) you have an opportunity to help protect the Company and its shareholders from the damage the Company will incur in having to defend itself in the class action.
Contact us to learn more:
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About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Zillow Group, Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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