Berman Tabacco Announces Investigation of Zillow Group, Inc. (Z, ZG) for Potential Securities Law Violations
Boston, Massachusetts--(Newsfile Corp. - November 3, 2021) - Berman Tabacco, a national law firm representing investors, is investigating potential securities law violations by Zillow Group, Inc. ("Zillow" or the "Company") (NASDAQ: Z) (NASDAQ: ZG). Zillow operates a real estate website in the U.S. The Company's Zillow Offers buys and sells homes directly in dozens of markets across the country.
On Sunday, October 17, 2021, Bloomberg reported that Zillow would "stop pursuing new home purchases as it works through a backlog of properties already in its pipeline." According to the Bloomberg report, a spokesperson for Zillow said, "[w]e are beyond operational capacity in our Zillow Offers business and are not taking on additional contracts to purchase homes at this time" and that "[w]e continue to process the purchase of homes from sellers who are already under contract, as quickly as possible."
On this news, shares of Class A shares (ZG) closed down $8.84 per share (or 9.4%) to close at $85.46 per share on October 18, 2021. Class C shares (Z) closed down $8.97 (or 9%) to close at $86.00 per share on October 18, 2021.
On November 2, 2021, after the market closed, Zillow issued a press release announcing, among other things, "its plan to wind down Zillow Offers, the [C]ompany's iBuying service in which Zillow acts as the primary purchaser and seller of homes." Zillow stated that "[t]he wind-down is expected to take several quarters and will include a reduction of Zillow's workforce by approximately 25%" and that "[i]ncluded in the company's third-quarter financial results is 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." Further, the "[C]ompany 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."
Following this news, Zillow Class A and Class C shares were each down over 18% per share by mid-day, November 3, 2021.
If you purchased Zillow securities and sustained investment losses, and would like to discuss your legal rights, or if you wish simply to share information about the investigation, please visit: https://www.bermantabacco.com/shareholder-contact/?company=Zillow%20Group,%20Inc.&class=&ticker=ZG,%20Z&plaintiff=.
Berman Tabacco is a national law firm representing institutions and individuals in lawsuits, seeking to recoup losses caused by corporate and board misconduct and violations of the securities and antitrust laws. The firm has offices in Boston, Massachusetts and San Francisco, California.
This notice may constitute attorney advertising.
Contact:
Berman Tabacco
Jay Eng, Esq.
One Liberty Square
Boston, Massachusetts
(800) 516-9926
Email: law@bermantabacco.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/101903
