Zillow Inc (NASDAQ:Z) Investor Files Lawsuit Over Alleged Breaches Of Fiduciary Duties By Directors

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Company Name(s): 
Zillow
Case Name: 
Zillow Shareholder Derivative Lawsuit 02/01/2013
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: Z
Lawsuit Overview
Type of Lawsuit: 
Shareholder Derivative Action
Date Filed: 
02/01/2013
Summary: 

Feb. 04, 2013 (Shareholders Foundation) -- A current investor in shares of Zillow Inc (NASDAQ:Z) filed a lawsuit against directors over alleged breaches of fiduciary duties in connection with certain statements. The plaintiff alleges that certain officers and directors sold millions worth of their shares at prices inflated by allegedly false and misleading statements.

The lawsuit by an investor against directors of Zillow Inc. over alleged breaches of fiduciary duties follows a recently filed lawsuit against Zillow Inc. over alleged securities laws violations. According to that complaint the plaintiff alleges that Zillow Inc violated the Securities Exchange Act of 1934 by issuing between February 15, 2012 and November 6, 2012allegedly materially false and misleading statements regarding the Company's business practices and financial results. More specifically, the plaintiff alleges that defendants allegedly concealed the difficulties Zillow Inc. was having signing up new real estate agents as subscribers and the churn it was experiencing in existing subscribers, and as a result of defendants' allegedly false statements, Zillow's stock (NASDAQ:Z) traded at artificially inflated prices between February 15, 2012 and November 6, 2012, reaching a high of $46.17 per share on September 20, 2012.

Then on November 5, 2012, Zillow Inc reported its third quarter 2012 results. Among other things, Zillow Inc also issued its guidance for the fourth quarter and FY 2012.

Shares of Zillow Inc (NASDAQ:Z) declined from as high as $38.20 on November 2, 2012 to as low as $23.36 per share on November 15, 2012.

On Jan 25, 2013, NASDAQ:Z shares closed at $35.35 per share.