The law firm of Kirby McInerney LLP is investigating potential claims against Zillow Group, Inc. (“Zillow” or the “Company”) (NASDAQ: Z, ZG). The investigation concerns whether Zillow has violated the federal securities laws and/or engaged in other unlawful business practices.
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 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 [C]ompany’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 [C]ompany’s current estimates of future selling prices.” Moreover, 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.” According to a Wall Street Journal article, Zillow once said its house flipping venture could generate $20 billion annually. On this news, the Company’s 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.
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 email@example.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.
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