Pomerantz LLP announces that a class action lawsuit has been filed against Zillow Group, Inc. (“Zillow” or the “Company”) and certain of its officers. The class action, filed in United States District Court, Western District of Washington, Seattle, is on behalf of a class consisting of investors who purchased or otherwise acquired Zillow securities, seeking to recover compensable damages caused by defendants’ violations of the Securities Exchange Act of 1934.
Zillow Group, Inc. provides e-commerce services. The Company provides information about homes, real estate listings, and mortgages through their website and mobile applications. Zillow serves homeowners, buyers, sellers, renters, and real estate professionals throughout the United States.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company’s co-marketing program did not comply with the Real Estate Settlement Procedures Act; and (ii) as a result of the foregoing, Zillow’ public statements were materially false and misleading at all relevant times.
On August 8, 2017, the Company filed a quarterly report on Form 10-Q with the Securities and Exchange Commission, announcing the Company’s financial and operating results for the quarter ended June 30, 2017.
The quarterly report stated that in April 2017, Zillow received a Civil Investigative Demand from the CFPB. On August 8, 2017, Zillow advised investors that the CFPB has concluded its investigation and “has invited us to discuss a possible settlement and indicated that it intends to pursue further action if those discussions do not result in a settlement.”
Following this news, Zillow’s share price fell $7.43, or 15.5%, over the following two trading days to close at $40.50 on August 10, 2017.