A lawsuit filed in federal court on November 16 alleges Zillow illegally failed to disclose to shareholders that it was struggling to accurately predict home prices for its house-flipping business, which ultimately led the company to shutter the operation this month. The suit, filed on behalf of shareholder Dibakar Barua, 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.
Seattle-based Zillow said two weeks ago that it was shutting down Zillow Offers, the company’s attempt at iBuying, an algorithm-driven version of house-flipping. At the same time, Zillow said it would lay off a quarter of its staff. The company had thousands of homes it still needed to resell, many likely at a loss. Zillow reported a loss of $328 million in the third quarter, a loss of $1.29 per share. “Fundamentally, we have been unable to predict future pricing of homes to a level of accuracy that makes this a safe business to be in,” CEO Rich Barton said during an earnings call Nov. 2. Zillow shares sank 23% the next day, closing at $65.86, down from more than $100 the previous week. Shares closed at $62.72 on Tuesday.
This blog is intended to provide information to the general public and to practitioners about developments that may impact Oregon class actions.
Volkswagen has agreed to settle a class action brought by investors arising out of its diesel emissions-cheating scandal. The complaint alleged that it knowingly issued false financial statements about its exposure and liabilities. 
Lawyers for a certified class of investors in Juno Therapeutics have announced a $24 million settlement to resolve claims that the biopharmaceutical company’s failure to disclose the death of one of its immunotherapy patients led to a 30 percent drop in its share price. 
Shareholders of Facebook stock sued the social media giant alleging that Facebook made misleading claims about its use of user data, which blew up this month when its alleged relationship to a Trump-linked data firm was made public.
In an important decision for investors, the U.S. Supreme Court ruled on March 20, 2018, that state courts can continue to hear certain securities class actions brought under federal law.
LJM Preservation and Growth Fund lost 80 percent of its value betting the wrong way on market turmoil in the first week of February. Now, it has been named in a proposed securities class action alleging the company and its executives lied to investors about its strategy.
Investors in a class action against media analytics company comScore Inc. asked a New York federal judge on January 12th to approve a $110 million settlement.
Shareholders of Brazilian oil giant, Petrobas, have obtained a nearly $3 billion settlement of a class action alleging that the energy company concealed kickbacks that top officials and their political patrons received in exchange for directing Petrobras to buy and build production facilities at inflated prices.
Hewlett Packard has agreed to pay $100 million to end a proposed securities class action over its $11 billion acquisition of British software company, Autonomy Corp.