Zillow Group, Inc.

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors:

(1) that, despite operational improvements, the company experienced significant unpredictability in forecasting home prices for its Zillow Offers business;
(2) that such unpredictability, as well as labor and supply shortages, led to a backlog of inventory;
(3) that, as a result of the foregoing, the company was reasonably likely to wind-down its Zillow Offers business, which would have a material adverse impact on its financial results; and
(4) that, as a result of the foregoing, defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.