Press release from Business Wire
Ryan & Maniskas, LLP Announces Class Action Lawsuit Against Zillow, Inc.
Friday, December 07, 2012
Ryan & Maniskas, LLP Announces Class Action Lawsuit Against Zillow, Inc.18:05 EST Friday, December 07, 2012 WAYNE, Pa. (Business Wire) -- Ryan & Maniskas, LLP (www.rmclasslaw.com/cases/z) announces that a class action lawsuit has been filed in the United States District Court for the Western District of Washington on behalf of purchasers of Zillow, Inc. (“Zillow”) (NASDAQ:Z) common stock during the period between February 15, 2012 and November 6, 2012 (the “Class Period”). For more information regarding this class action suit, please contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by email at email@example.com or visit: www.rmclasslaw.com/cases/z. 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. If you are a member of the class, you may, no later than January 28, 2013, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action. For more information about the case or to participate online, please visit: www.rmclasslaw.com/cases/z or contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218, or by e-mail at firstname.lastname@example.org. For more information about class action cases in general or to learn more about Ryan & Maniskas, LLP, please visit our website: www.rmclasslaw.com. Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide. Ryan & Maniskas, LLPRichard A. Maniskas, Esquire484email@example.com/cases/z