ATLANTA, GA--(Marketwire - Nov 29, 2012) - A class action lawsuit has been filed on behalf of investors who purchased common stock of Zillow, Inc. ("Zillow" or the "Company") (NASDAQ: Z) between February 15, 2012 and November 6, 2012. The lawsuit, which was filed in the United States District Court for the Western District of Washington, alleges that Zillow executives violated the federal securities laws by misrepresenting certain information in connection with the Company's real estate agent subscription growth and cancellation rates. While the stock was artificially inflated, according to the complaint filed against Zillow, 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 conducted a public offering on September 6, 2012, raising $156 million in proceeds. Then, on November 5, 2012, Zillow announced its third quarter 2012 financial results, reducing its fourth quarter and full year 2012 revenue guidance and revealing revenue expectations that fell below analyst estimates. Zillow also announced that its estimates of home valuation, referred to as "Zestimates," had lost a large displayer advertiser, Foreclosure.com, and therefore defendants expected weakness in the Company's display advertising business. The value of Zillow's stock declined significantly on these disclosures, closing at $28.15 per share on November 6, 2012, a one-day collapse of nearly 18%, on volume of 7.4 million shares.
If you purchased Zillow common stock between February 15, 2012 and November 6, 2012, and suffered a net loss on those purchases, you have the legal right to petition the Court to be appointed a "lead plaintiff." A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any such request must satisfy certain criteria and must be made no later than January 28, 2013. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Investors who are interested in serving as lead plaintiff or who have questions concerning their legal rights may contact Corey Holzer, Esq. (email@example.com) or William Stone, Esq. (firstname.lastname@example.org) by email or via toll-free telephone at (888) 508-6832.
Holzer Holzer & Fistel, LLC dedicates its practice to vigorous representation of shareholders and investors in litigation nationwide, including shareholder class action and derivative litigation. More information about the firm is available through its website, www.holzerlaw.com, and upon request from the firm. Holzer Holzer & Fistel, LLC has paid for the dissemination of this promotional communication, and Corey Holzer is the attorney responsible for its content.