Harwood Feffer LLP Announces Investigation of Zillow, Inc.
NEW YORK, Nov. 30, 2012 /PRNewswire/ -- Harwood Feffer LLP (www.hfesq.com) is investigating potential claims against the board of directors of Zillow, Inc. ("Zillow" or the "Company") (NASDAQ: Z), concerning whether the board has breached its fiduciary duties to shareholders.
On September 6, 2012, the Company raised $156 million in a second equity offering. Shortly thereafter, on September 20, 2012, Zillow stock reached an all-time high when it closed at $46.17 per share. At times surrounding these two events, Company insiders were selling over 3 million shares of Zillow stock for approximately $115 million in proceeds.
On November 5, 2012, the Company issued a press release in which it reduced its fourth quarter and full year 2012 guidance and revealed revenue below analyst estimates. The Company additionally disclosed that one of its products, estimates of home valuation called "Zestimates," had lost a large display advertiser, causing weakness in the Company's display advertising business.
As a result of the foregoing, Zillow stock dropped from its $46.17 per share high to a low of $23.36 per share on November 13, 2012. Company stock is currently trading below $27.00.
Our investigation concerns whether the Zillow board of directors has breached its fiduciary duties to shareholders, grossly mismanaged the Company, and/or committed abuses of control in connection with the foregoing.
If you own Zillow shares and wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact:
Robert I. Harwood, Esq.
Matthew M. Houston, Esq.
Benjamin Sachs-Michaels, Esq.
Harwood Feffer LLP
488 Madison Avenue
New York, New York 10022
Phone Numbers: (877) 935-7400
Harwood Feffer has been representing individual and institutional investors for many years, serving as lead counsel in numerous cases in federal and state courts. Please visit the Harwood Feffer LLP website (http://www.hfesq.com) for more information about the firm.
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SOURCE Harwood Feffer LLP