SAN DIEGO and SEATTLE, Dec. 10, 2012 /PRNewswire/ -- Shareholder rights firm Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors of Zillow, Inc. (NASDAQ: Z).
Robbins Umeda LLP is investigating allegations that certain officers and directors of Zillow breached their fiduciary duties to shareholders by permitting and failing to correct insufficient controls and improper procedures that led to the disclosure of false and/or misleading statements. In particular, the firm is investigating whether the company concealed the difficulties Zillow faced attracting new real estate agents as subscribers, its existing subscriber churn, and cancellations. As a result, Zillow's stock traded at artificially inflated prices, reaching a high of $46.17 per share on September 20, 2012. While Zillow's stock price was artificially inflated, company insiders were able to sell 3.1 million shares of Zillow stock for approximately $115 million.
On November 5, 2012, Zillow announced its third quarter 2012 financial results, and reduced its fourth quarter and full revenue guidance, revealing revenue expectations below analysts' estimates. Further, Zillow announced that its estimates of home valuation had lost a large display advertiser, Foreclosure.com, leading to an expected weakness in the Company's display advertising business. On this news, Zillow stock declined 18%, or $6.22 per share, to close at $28.15 on November 6, 2012.
Robbins Umeda LLP highlights that Zillow shareholders have the option to pursue a shareholder derivative action, through which shareholders aim to hold insider wrongdoers accountable for their actions, prevent future misconduct, and bring long-term value back to the company. Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, firstname.lastname@example.org, or via the shareholder information form on the firm's website.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsumeda.com.
Press release link: http://www.robbinsumeda.com/shareholders-rights-blog/zillow-inc/
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SOURCE Robbins Umeda LLP