Real estate giant Zillow hasn’t had an easy month. First came the announcement that Zillow was closing down it’s I-buying program after suffering huge losses.
Now, multiple shareholders are filing suits alleging that Zillow failed to disclose to shareholders that it was struggling to accurately predict home prices for its house flipping business, which ultimately led to the company shuttering the operation in November.
One particular suit, alleges that “misstatements and/or omissions” by Zillow executives drove up Zillow share prices that later plummeted when the company announced it would shut down Zillow offers, according to an article in The Seattle Times.
In February Zillow had a market value of approximately $48 billion recently it closed at nearly $14 billion. Zillow is traded on Nasdaq. A recent article in Real Trends by Matthew Blake details the currently filed suits and challenges faced by Zillow.
Finally, Zillow recently cancelled hundreds of purchase contracts across the country according to an article in the Phoenix Business Journal by Angela Gonzales an action that could result in more litigation.