thanks, I did not know that they were under investigation by the SEC... again I just had an alert coming up earlier this week on my news... again the title was: "Zillow Inc (NASDAQ:Z) Investor Alert: Investigation over Possible Violations of Securities Laws".. just google it... I can not paste the content... they did not say anything about the SEC investigation but it might be related...
when the SEC files a lawsuit do we get money? I am lost I thought if they find something then Zillow has to pay and they are even more screwed then... am I missing something?
When the SEC files a lawsuit, the government gets the money.
A "derivative action" can be filed but only by a shareholder, and it is filed against the management and Board of Directors, and it is the company itself that receives any funds that are derived.
A shareholder can also file a class action against a management and its Board, and the company itself. This is done on behalf of all shareholders that purchased shares between specified dates (and only those shareholders). The dates are determined by when the purported improper conduct began, and when it was reported. The shareholders usually get what amounts to a cup of coffee while the lawyer that manages the class action gets rich (I recently received a coupon for an oil change at my favorite auto dealership after the nationwide chain was sued for overcharging customers in the service bays).
Yes Zillow is / was under invesigation by the SEC. It was announced on October 2nd that Zillow was subject to a SEC investigation regarding its revenue recognition policy and how it accounted for one time adjustments. The trail of letters between the SEC and Zillow can be read on the SEC website. Well worth reading, but unfortunately Yahoo doesn't allow weblinks to other websites. There is a thread on this message board started by 'acesmith999' on October 2nd about the SEC investigation of Zillow that you may want to read as well.
I have it from a reliable source that Zillow also causes hemroids and oral herpes. It is also though they were involved in the Lindberg baby kidnap/murder. All the details are on that other message board too - well worth reading but unfortunately the shorts here have the creditability of rabid ferrets!