Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor, LLP announce that the firms are investigating legal claims against Zillow, Inc. (“Zillow”) (Nasdaq: Z) and its officers and Board of Directors for potential breaches of fiduciary duties and violations of federal securities laws.
If you are an affected investor who purchased shares between February 15, 2012 and November 6, 2012 (“Class Period”) and you want to learn more about the lawsuit or join the action, contact Patrick Powers at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at firstname.lastname@example.org, or Willie Briscoe at The Briscoe Law Firm, PLLC, (214) 706-9314, or via email at WBriscoe@TheBriscoeLawFirm.com. There is no cost or fee to you.
In a recently filed federal class action complaint, Zillow and certain of its officers and directors were charged with violating the Securities Exchange Act of 1934. Specifically, the complaint alleges that defendants’ statements during the Class Period were each materially false and misleading in that defendants concealed the difficulties Zillow was having in signing up new real estate agents as subscribers and the churn it was experiencing in existing subscribers. As a result of these allegedly false statements, Zillow’s stock traded at artificially inflated prices during the Class Period. Then on November 5, 2012, Zillow issued a press release announcing its third quarter 2012 financials, and an update to its fourth quarter and full year 2012 revenue guidance, which fell below analysts’ estimates. Defendants also announced that they expected weakness in Zillow’s display advertising business. These disclosures caused Zillow’s shares to drop dramatically causing a one-day decline of $6.22 per share. According to shareholder rights attorney Patrick Powers, “The investigation into Zillow relates to whether it made false and/or misleading statements or failed to disclose material information about its business operations and financial prospects. Our proposed lawsuit will seek to preserve Zillow’s stockholders’ rights and hold Zillow accountable for its actions.”