Case Page

 

Case Status:    DISMISSED    
On or around 10/20/2014 (Court's order of dismissal)

Filing Date: November 29, 2012

According to the law firm press release, the complaint charges Zillow and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Zillow is a real estate information marketplace.

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business practices and financial results. Specifically, defendants concealed the difficulties Zillow was having signing up new real estate agents as subscribers and the churn it was experiencing in existing subscribers. As a result of defendants’ false statements, Zillow’s stock traded at artificially inflated prices during the Class Period, reaching a high of $46.17 per share on September 20, 2012. While Zillow’s stock price was artificially inflated, Company insiders sold 3.1 million shares of their own Zillow stock for proceeds of nearly $115 million, including $103 million worth of stock sold by the officers named as defendants. The Company also was able to raise $156 million in proceeds through a follow-on offering in September 2012, just eight weeks before the end of the Class Period when defendants were forced to reduce revenue guidance and just 30 days after assuring investors that the filing of a Form S-3 Registration Statement was just part of “good housekeeping,” and was not intended for a follow-on offering.

Then, on November 5, 2012, after the market closed, Zillow issued a press release announcing its third quarter 2012 financial results and reducing its fourth quarter and full year 2012 revenue guidance, revealing revenue expectations that fell below analysts’ estimates. Furthermore, Zillow announced that its estimates of home valuation, referred to as “Zestimates,” had lost a large display advertiser, Foreclosure.com, and therefore defendants expected weakness in the Company’s display advertising business. These disclosures caused Zillow stock to collapse $6.22 per share to close at $28.15 per share on November 6, 2012, a one-day decline of nearly 18% on volume of 7.4 million shares.

On April 24, 2013, the Court issued an Order appointing lead plaintiff and approving the selection of lead counsel. The lead plaintiffs filed an amended and consolidated complaint on June 24.

On August 22, 2013, the parties filed a Stipulation agreeing to the dismissal of an individual defendant.

On October 20, 2014, the Court issued an Order granting Defendants' Motion to Dismiss. This dismissal was with prejudice, and the case is now closed.

COMPANY INFORMATION:

Sector: Services
Industry: Real Estate Operations
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: Z
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: W.D. Washington
DOCKET #: 12-CV-02084
JUDGE: Hon. Ricardo S Martinez
DATE FILED: 11/29/2012
CLASS PERIOD START: 02/15/2012
CLASS PERIOD END: 11/06/2012
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bottini & Bottini, Inc.
    7817 Ivanhoe Avenue, Suite 102, Bottini & Bottini, Inc., CA 92037
    858.914.2001 858.914.2002 ·
  2. Hagens Berman Sobol Shapiro LLP (New Seattle)
    1918 Eighth Ave. Suite 3300, Hagens Berman Sobol Shapiro LLP (New Seattle), WA 98101
    206.623.7292 206.623.0594 ·
  3. Robbins Geller Rudman & Dowd LLP (San Diego)
    655 West Broadway, Suite 1900, Robbins Geller Rudman & Dowd LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
No Document Title Filing Date
COURT: W.D. Washington
DOCKET #: 12-CV-02084
JUDGE: Hon. Ricardo S Martinez
DATE FILED: 06/24/2013
CLASS PERIOD START: 02/15/2012
CLASS PERIOD END: 11/06/2012
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Hagens Berman Sobol Shapiro LLP (New Seattle)
    1918 Eighth Ave. Suite 3300, Hagens Berman Sobol Shapiro LLP (New Seattle), WA 98101
    206.623.7292 206.623.0594 ·
  2. Levi & Korsinsky LLP (DC)
    1101 30th Street, NW; Suite 115, Levi & Korsinsky LLP (DC), DC 20007
    ·
No Document Title Filing Date