NEW YORK, Dec. 4, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Zillow, Inc. ("Zillow" or the "Company") (NASDAQ-GS:Z).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose the difficulties Zillow was having signing up new real estate agents as subscribers and the churn it was dealing with in retaining existing subscribers.
The investigation also focuses on whether Company executives contrived to keep prices artificially high while transacting insider sales of almost $115 million.
On September 6, 2012, the Company raised $156 million in proceeds through a secondary offering, which came just eight weeks before Zillow reduced revenue guidance and just 30 days after assuring investors that the filing of a Form S-3 Registration Statement was just part of "good housekeeping," and was not intended for a follow-on offering.
Then, after market close on November 5, 2012, Zillow issued a press release announcing its third quarter 2012 financial results which reduced the Company's fourth quarter and full year 2012 revenue guidance and revealed revenue that fell well below analysts' estimates. Furthermore, Zillow announced that its estimates of home valuation, referred to as "Zestimates," had lost a large display advertiser, Foreclosure.com, and that the Company therefore expected weakness in the Company's display advertising business. These disclosures caused Zillow stock to collapse $6.22 per share to close at $28.15 per share on November 6, 2012, a one-day decline of nearly 18% on volume of 7.4 million shares.
Request more information now by clicking here: www.faruqilaw.com/ZILLOW. There is no cost or obligation to you.
If you purchased Zillow stock or options between February 15 and November 6, 2012 and would like to discuss your legal rights, visit www.faruqilaw.com/ZILLOW. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com or firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding Zillow's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
Francis McConville, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
SOURCE Faruqi & Faruqi, LLP