Case Status
Active
Case Caption
Barua v. Zillow Group, Inc., et al.
Position
Lead Counsel
Practice Areas
Court
U.S. District Court for the Western District of Washington
Judge Assigned
Hon. Thomas S. Zilly
Case Number
2:21-cv-01551-TSZ
Defendant(S)
Zillow Group, Inc.
Richard N. Barton
Allen W. Parker
Jeremy Wacksman
Stock Symbol
Z, ZG
File Date
Class Period
-
Lead Plaintiff Deadline
Phone

The litigation challenges Defendants’ statements concerning the Zillow Offers business, which buys and sells homes directly in dozens of markets across the country and allows sellers control over their timeline.

The Complaint alleges that Defendants falsely touted the durability and acceleration of the company’s “burgeoning sell-side business, Zillow Offers” and improvements to its pricing models.  At the same time, Defendants concealed from investors that (1) Zillow faced significant unpredictability in forecasting home prices for its Zillow Offers business, (2) the unpredictability, as well as labor and supply shortages, led to a backlog of inventory, and (3) as a result, Zillow was reasonably likely to wind down the Zillow Offers business.

Investors began to learn the truth on Oct. 18, 2021, when Zillow announced that due to a backlog in renovations and operational capacity constraints, the Zillow Offers business will not sign any new additional contracts to buy homes through the end of 2021.

Then, on Nov. 2, 2021, Zillow announced that due to unpredictability in forecasting home prices, the company is winding down the Zillow Offers business, slashing its workforce by 25%, and incurring a whopping $304 million write-down on housing inventory purchased during Q3 2021.  The company also said it expects to incur a $240 to $265 million loss on homes it expects to purchase in Q4 2021.

These events sent the price of Zillow shares crashing lower.

Case Timeline
Title
Consolidated Amended Class Action Complaint is Filed
Description

Hagens Berman filed a robust complaint detailing Defendants' falling behind its internal home purchasing volume targets and launching a risky business initiative the company hid from investors.

Case Status
Date
Title
Hagens Berman is Appointed Lead Counsel
Case Status
Date

CASE TIMELINE

Consolidated Amended Class Action Complaint is Filed

Hagens Berman filed a robust complaint detailing Defendants' falling behind its internal home purchasing volume targets and launching a risky business initiative the company hid from investors.

Hagens Berman is Appointed Lead Counsel

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