INVESTOR ALERT: Kirby McInerney LLP Reminds Investors That a Class Action Lawsuit Has Been Filed on Behalf of Zillow Group, Inc. (Z, ZG) Investors with an Expanded Class Period and Encourages Investors to Contact the Firm Before January 18, 2022 – Press Release

NEW YORK, Jan. 07, 2022 (GLOBE NEWSWIRE) — The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Western District of Washington on behalf of those who acquired Zillow Group, Inc. (“Zillow” or the “Company”) (NASDAQ:Z, ZG)) securities from August 7, 2020 through November 2, 2021, inclusive (the “Class Period”). Investors have until January 18, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

Zillow is a real estate company that purports to offer customers an on-demand experience for selling, buying, renting or financing with transparence.

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 constraints[.]” 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 declined by $8.84 per share, or approximately 9.4%, from $94.30 per share to close at $85.46 per share on October 18, 2021, and Zillow’s Class C share price declined by $8.97 per share, or approximately 9.4%, from $94.97 per share to close at $86.00 per share on October 18, 2021.

Then, on November 2, 2021, Zillow announced that it was winding 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, third quarter 2021 financial results included a $304 million inventory write-down, and the Company further expected “an additional $240 million to $265 million of losses to be recognized in Q4.” On this news, Zillow’s Class A share price declined by $19.62 per share, or approximately 23%, from $85.48 per share to close at $65.86 per share on November 3, 2021, and Zillow’s Class C share price declined by $21.73 per share, or approximately 24.9%, from $87.20 per share to close at $65.47 per share on November 3, 2021.

The lawsuit alleges throughout the Class Period, Defendants repeatedly, falsely touted the strength and sustainability of the Company’s 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 Zillow’s financial results; and (4) as a result of the foregoing, the Defendants’ positive Class Period statements about Zillow’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

If you purchased or otherwise acquired Zillow securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.

Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-371-6600
https://www.kmllp.com
investigations@kmllp.com