Zillow investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Zillow operates real estate and home-related information marketplaces on mobile and the Web in the United States. The company’s co-marketing program allows mortgage lenders to pay for portions of realty agents’ monthly advertising costs on Zillow websites.
The Class Period commences on February 12, 2016, when the company filed a Form 10-K for the fiscal year ended December 31, 2015 with the SEC, which provided the company’s annual financial results and position.
The complaint alleges that, on August 8, 2017, the company filed a Form 10-Q for the quarterly period ended June 30, 2017, stating in relevant part, “In April 2017, we received a Civil Investigative Demand from the Consumer Financial Protection Bureau (“CFPB”) requesting information related to our March 2017 response to the CFPB’s February 2017 Notice and Opportunity to Respond and Advise (“NORA”) letter. The NORA letter notified us that the CFPB’s Office of Enforcement was considering whether to recommend that the CFPB take legal action against us, alleging that we violated Section 8 of the Real Estate Settlement Procedures Act (“RESPA”) and Section 1036 of the Consumer Financial Protection Act (“CFPA”).” The Form 10-Q also stated that the CFPB concluded its investigation and “invited us to discuss a possible settlement and indicated that it intends to pursue further action if those discussions do not result in a settlement.”
Following this news, shares of the Zillow fell $7.43 per share or over 15% over the next two trading days to close at $40.50 per share on August 10, 2017.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) the company’s co-marketing program did not comply with the Real Estate Settlement Procedures Act; and (2) as a result, the company’s public statements were materially false and misleading at all relevant times.
If you are a member of the class described above, you may no later than October 23, 2017 move the Court to serve as lead plaintiff of the class, if you so choose.
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. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org.
Kessler Topaz Meltzer & Check, LLP
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