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US Supreme Court won't hear Zillow's bid to escape investor class action
The justices left intact a class action alleging Zillow misled investors about Zillow Offers after the company disclosed $300 million in losses and 25% layoffs.
- The Supreme Court declined to hear Zillow's appeal on Monday, the first day of the court's new term, leaving intact a lower-court ruling that allows a 2021 investor class action to proceed.
- Investors filed the lawsuit after Zillow announced in November 2021 it would permanently close its Zillow Offers division, disclosing a $300 million write-down and layoffs of 25% of its workforce.
- Last year, the 9th Circuit Court upheld the class action, finding that Zillow's disclosures 'revealed new information about how Zillow's home-pricing struggles threatened the business and suggested that its earlier statements may have obscured how Zillow's pricing model misfired.'
- Zillow must now face the lawsuit in federal court, with company lawyers maintaining that it 'made a business decision to enter a new line of business, disclosing all of the risk in doing so, that in the end simply did not work out as the company had hoped.'
- Pro-Business groups, including the Chamber of Commerce, criticized the 9th Circuit decision, arguing the ruling deviates from Supreme Court precedent and 'would expose American businesses to costly securities class-action lawsuits.
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US Supreme Court won't hear Zillow's bid to escape investor class action
The US Supreme Court declined on Monday to hear a bid by real estate platform Zillow Group to escape a class action that accused it of misleading investors about its failed home-flipping venture.
·London, United Kingdom
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