Robbins Umeda LLP Announces an Investigation of Zillow, Inc. on
behalf of Zillow Shareholders
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).
(Logo:
http://photos.prnewswire.com/prnh/20111014/ROBBINSUMEDALOGO)
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, info@robbinsumeda.com, 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/
Attorney Advertising. Past results do not guarantee a similar
outcome.
Contact:
Robbins Umeda LLP
Darnell R. Donahue
Info@robbinsumeda.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsumeda.com
SOURCE Robbins Umeda LLP