
Payoneer Global Inc. (PAYO)
Whether directors and officers of Payoneer Global Inc. (PAYO) breached their fiduciary duties to the company and its shareholders.
Investigation
11/16/2021
Initial Lawsuit
11/16/2021
Lawsuit Progression
02/16/2022
Investigation regarding Zillow’s statements about the impact of forecasting home prices in its Offers business and supply shortage on an inventory backlog, ultimately leading to the wind-down of Offers.
11/02/2021
Zillow reports its Q3 2021 financial results, revealing the wind down of Zillow Offers, its iBuying service in which it acts as purchaser and seller of homes, along with a 25% workforce reduction. In the quarter, the company reported a write-down of inventory of $304 million within the Homes segment “as a result of purchasing homes in Q3 at higher prices than the company’s current estimates of future selling prices.”
“We’ve determined the unpredictability in forecasting home prices far exceeds what we anticipated and continuing to scale Zillow Offers would result in too much earnings and balance-sheet volatility.”
Stock Impact
Close | Previous close | Price variation | Percentage variation |
---|---|---|---|
$65.47 | $87.2 | $-21.73 | -24.92% |
Plaintiff brings this securities class action on behalf of persons and entities that purchased or otherwise acquired Zillow securities between February 10, 2021 and November 2, 2021, inclusive.
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.
02/16/2022
The court issued an order appointing the lead plaintiff and lead counsel.
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