SAN FRANCISCO, Nov. 4, 2021 /PRNewswire/ -- Hagens Berman urges Zillow Group, Inc. (NASDAQ: Z, ZG) investors who have significant losses to submit your losses now.
Contact An Attorney Now: Z@hbsslaw.com
Zillow Group, Inc. (Z, ZG) Investigation:
The investigation focuses on Zillow's and senior management's statements concerning the business prospects for the company's Zillow Offers business, which buys and sells homes directly in dozens of markets across the country and allows sellers control over their timeline.
As recently as Aug.5, 2021, during Zillow's Q2 2021 earnings call, senior management touted the acceleration of the company's Zillow Offers business, the "strong durable support for the housing market," and improvements in the company's neural Zestimate pricing model.
But according to a Nov. 1, 2021, MarketWatch report, KeyBanc analyst Edward Yruma highlighted how most of the homes Zillow purchased, with an aim to flip them, were now worth less than what the company paid for them.
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.
This news sent the price of Zillow shares crashing lower.
"We're focused on investors' losses, whether Zillow misled investors about its visibility into the housing market and the efficacy of its pricing models, and whether Zillow may have historically overstated its inventory account," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Zillow and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Zillow should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email Z@hbsslaw.com.
Hagens Berman is a national law firm with eight offices in eight cities around the country and over eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895
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SOURCE Hagens Berman Sobol Shapiro LLP