This case was last updated from U.S. District Courts on 01/15/2022 at 08:09:09 (UTC).

Barua v. Zillow Group Inc et al

Case Summary

On November 16, 2021, Dibakar Barua (“Plaintiff”), individually and on behalf of all others similarly situated, represented by Benjamin T.G. Nivison of Rossi Vucinovich PC, filed a civil action against Zillow, Richard Barton (“Barton”), Allen Parker (“Parker”) and Jeremy Wacksman (“Wacksman”) (Barton, Parker, and Wacksman collectively, the “Individual Defendants”), seeking damages and costs among other reliefs for the alleged wrongdoing of the Defendants. This case was filed in U.S. District Court in the Western District of Washington with Judge Thomas S. Zilly presiding.

 

In their complaint, the Plaintiff alleged that, “Zillow is a real estate company that purports to offer customers “an on-demand experience for selling, buying, renting or financing with transparence.” The Company’s “Zillow Offers” business “buys and sells homes directly in dozens of markets across the country, allowing sellers control over their timeline.” On October 18, 2021, the Company announced that Zillow Offers suspended signing of new contracts through 2021 and would focus on its current inventory, citing “a backlog in renovations and operational capacity restraints.” Zillow claimed that “[p]ausing new contracts will enable us to focus on sellers already under contract with us and our current home inventory.” On this news, Zillow’s Class A share price fell $8.84, or 9.4%, to close at $85.46 per share on October 18, 2021, and Zillow’s Class C share price fell $8.97, or 9.4%, to close at $86.00 per share on October 18, 2021, on unusually heavy trading volume.”

 

The Plaintiff further alleged that, “on November 2, 2021, after the market closed, Zillow announced that it would wind-down Zillow Offers because “the unpredictability in forecasting home prices far exceeds what we anticipated and continuing to scale Zillow Offers would result in too much earnings and balance-sheet volatility.” As a result, third quarter 2021 financial results included “a write-down of inventory of approximately $304 million within the Homes segment as a result of purchasing homes in Q3 at higher prices than the [C]ompany’s current estimates of future selling prices.” Moreover, the “[C]ompany further expects an additional $240 million to $265 million of losses to be recognized in Q4 primarily on homes it expects to purchase in Q4.” The “wind-down is expected to take several quarters and will include a reduction of Zillow’s workforce by approximately 25%.”

 

The Plaintiff also alleged that, “Zillow’s Class A share price fell $19.62, or 23%, to close at $65.86 per share on November 3, 2021, on unusually heavy trading volume. Zillow’s Class C share price fell $21.73, or 25%, to close at $65.47 per share on November 3, 2021, on unusually heavy trading volume. Throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects.”

 

There are two claims for relief laid down by the Plaintiff. The first claim alleged deals with the violation of Section 10(b) of The Exchange Act and Rule 10b-5 Promulgated Thereunder. The second claim alleged deals with the violation of Section 20(a) of The Exchange Act.

 

In their prayer for relief, the Plaintiff has requested the Court for an award of compensatory damages in favor of Plaintiff and the other Class members against all defendants, jointly and severally, for all damages sustained as a result of Defendants’ wrongdoing and award to Plaintiff and the Class their reasonable costs and expenses incurred in this action, including counsel fees and expert fees along with such other and further relief as the Court may deem just and proper.

 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    2:21-CV-01551

  • Filing Date:

    11/16/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Finance - Security/Commodity/Exchange

Judge Details

Presiding Judge

Thomas S. Zilly

 

Party Details

Plaintiff

Dibakar Barua

Defendants

Zillow Group, Inc.

Richard Barton

Allen Parker

Jeremy Wacksman

Zillow Group Inc

Attorney/Law Firm Details

Plaintiff Attorneys

Benjamin T.G. Nivison

Attorney at ROSSI VUCINOVICH PC

1000 Second Avenueste 1420

Seattle, WA 98104

Charles H Linehan

Attorney at GLANCY PRONGAY & MURRAY LLP

1925 Century Park East Ste 2100

Los Angeles, CA 90067

Defendant Attorney

Sean C Knowles

Attorney at PERKINS COIE (SEA)

1201 3Rd Ave Ste 4900

Seattle, WA 98101-3099

 

Court Documents

1 #1

Main Document

1 #1

Exhibit

#2

(#2) Notice of Filing Deficiency re #1 Complaint. ***Action Required*** Civil Cover Sheet Omitted.See attached letter for more information and instructions. (ST) (Entered: 11/17/2021)

#3

(#3) CIVIL COVER SHEET re #1 Complaint, ; filed by Plaintiff Dibakar Barua. (Nivison, Benjamin) (Entered: 11/17/2021)

#4

(#4) ORDER REGARDING INITIAL DISCLOSURES AND JOINT STATUS REPORT by Judge Thomas S. Zilly: Joint Status Report due by 1/18/2022, FRCP 26(f) Conference Deadline is 1/3/2022, Initial Disclosure Deadline is 1/18/2022. (TKL) (Entered: 11/18/2021)

#5

(#5) PRAECIPE TO ISSUE SUMMONS re #1 Complaint, by Plaintiff Dibakar Barua (Nivison, Benjamin) (Entered: 11/19/2021)

#6

(#6) PRAECIPE TO ISSUE SUMMONS re #1 Complaint, by Plaintiff Dibakar Barua (Nivison, Benjamin) (Entered: 11/19/2021)

#7

(#7) PRAECIPE TO ISSUE SUMMONS re #1 Complaint, by Plaintiff Dibakar Barua (Nivison, Benjamin) (Entered: 11/19/2021)

#8

(#8) PRAECIPE TO ISSUE SUMMONS re #1 Complaint, by Plaintiff Dibakar Barua (Nivison, Benjamin) (Entered: 11/19/2021)

#9

(#9) Summons(es) Electronically Issued as to defendant(s) Richard Barton, Allen Parker, Jeremy Wacksman, Zillow Group Inc (MW) (Entered: 11/22/2021)

#10

(#10) NOTICE of Appearance by attorney Sean C Knowles on behalf of Defendants Richard Barton, Allen Parker, Jeremy Wacksman, Zillow Group Inc. (Knowles, Sean) (Entered: 12/20/2021)

#11

(#11) CORPORATE DISCLOSURE STATEMENT indicating no Corporate Parents and/or Affiliates. Filed pursuant to Fed.R.Civ.P 7.1. Filed by Richard Barton, Allen Parker, Jeremy Wacksman, Zillow Group Inc (Knowles, Sean) (Entered: 12/20/2021)

#12

(#12) Stipulated MOTION and [Proposed] Order (1) Extending Time to Respond to Complaint; (2) Adjourning Discovery Deadlines; and (3) Setting Briefing Schedule on any Motion to Dismiss, filed by Defendants Richard Barton, Allen Parker, Jeremy Wacksman, Zillow Group Inc. (Knowles, Sean) (Entered: 12/20/2021)

#13

(#13) ORDER granting Parties' #12 Stipulated MOTION (1) Extending Time to Respond to Complaint; (2) Adjourning Discovery Deadlines; and (3) Setting Briefing Schedule on any Motion to Dismiss. Signed by Judge Thomas S. Zilly.(MW) (Entered: 12/21/2021)

#14

(#14) APPLICATION OF ATTORNEY Charles H. Linehan FOR LEAVE TO APPEAR PRO HAC VICE for Plaintiff Dibakar Barua (Fee Paid) Receipt No. AWAWDC-7391502 (Nivison, Benjamin) (Entered: 01/04/2022)

4 More Documents Available
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Docket Entries

  • 01/05/2022
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  • Docket(#15) ORDER re #14 Application for Leave to Appear Pro Hac Vice. The Court ADMITS Attorney Charles H Linehan for Plaintiff Dibakar Barua, by Clerk Ravi Subramanian. No document associated with this docket entry, text only.NOTE TO COUNSEL: Local counsel agrees to sign all filings and to be prepared to handle the matter, including the trial thereof, in the event the applicant is unable to be present on any date scheduled by the court, pursuant to LCR 83.1(d).(DS) (Entered: 01/05/2022)

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  • 01/04/2022
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  • Docket(#14) APPLICATION OF ATTORNEY Charles H. Linehan FOR LEAVE TO APPEAR PRO HAC VICE for Plaintiff Dibakar Barua (Fee Paid) Receipt No. AWAWDC-7391502 (Nivison, Benjamin) (Entered: 01/04/2022)

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  • 12/21/2021
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  • Docket(#13) ORDER granting Parties' #12 Stipulated MOTION (1) Extending Time to Respond to Complaint; (2) Adjourning Discovery Deadlines; and (3) Setting Briefing Schedule on any Motion to Dismiss. Signed by Judge Thomas S. Zilly.(MW) (Entered: 12/21/2021)

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  • 12/20/2021
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  • Docket(#12) Stipulated MOTION and [Proposed] Order (1) Extending Time to Respond to Complaint; (2) Adjourning Discovery Deadlines; and (3) Setting Briefing Schedule on any Motion to Dismiss, filed by Defendants Richard Barton, Allen Parker, Jeremy Wacksman, Zillow Group Inc. (Knowles, Sean) (Entered: 12/20/2021)

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  • 12/20/2021
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  • Docket(#11) CORPORATE DISCLOSURE STATEMENT indicating no Corporate Parents and/or Affiliates. Filed pursuant to Fed.R.Civ.P 7.1. Filed by Richard Barton, Allen Parker, Jeremy Wacksman, Zillow Group Inc (Knowles, Sean) (Entered: 12/20/2021)

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  • 12/20/2021
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  • Docket(#10) NOTICE of Appearance by attorney Sean C Knowles on behalf of Defendants Richard Barton, Allen Parker, Jeremy Wacksman, Zillow Group Inc. (Knowles, Sean) (Entered: 12/20/2021)

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  • 11/22/2021
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  • Docket(#9) Summons(es) Electronically Issued as to defendant(s) Richard Barton, Allen Parker, Jeremy Wacksman, Zillow Group Inc (MW) (Entered: 11/22/2021)

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  • 11/19/2021
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  • Docket(#8) PRAECIPE TO ISSUE SUMMONS re #1 Complaint, by Plaintiff Dibakar Barua (Nivison, Benjamin) (Entered: 11/19/2021)

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  • 11/19/2021
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  • Docket(#7) PRAECIPE TO ISSUE SUMMONS re #1 Complaint, by Plaintiff Dibakar Barua (Nivison, Benjamin) (Entered: 11/19/2021)

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  • 11/19/2021
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  • Docket(#6) PRAECIPE TO ISSUE SUMMONS re #1 Complaint, by Plaintiff Dibakar Barua (Nivison, Benjamin) (Entered: 11/19/2021)

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  • 11/19/2021
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  • Docket(#5) PRAECIPE TO ISSUE SUMMONS re #1 Complaint, by Plaintiff Dibakar Barua (Nivison, Benjamin) (Entered: 11/19/2021)

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  • 11/18/2021
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  • Docket(#4) ORDER REGARDING INITIAL DISCLOSURES AND JOINT STATUS REPORT by Judge Thomas S. Zilly: Joint Status Report due by 1/18/2022, FRCP 26(f) Conference Deadline is 1/3/2022, Initial Disclosure Deadline is 1/18/2022. (TKL) (Entered: 11/18/2021)

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  • 11/17/2021
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  • Docket(#3) CIVIL COVER SHEET re #1 Complaint, ; filed by Plaintiff Dibakar Barua. (Nivison, Benjamin) (Entered: 11/17/2021)

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  • 11/17/2021
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  • Docket(#2) Notice of Filing Deficiency re #1 Complaint. ***Action Required*** Civil Cover Sheet Omitted.See attached letter for more information and instructions. (ST) (Entered: 11/17/2021)

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  • 11/17/2021
  • DocketJudge Thomas S. Zilly added. (ST) (Entered: 11/17/2021)

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  • 11/16/2021
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  • Docket(#1) COMPLAINT FOR VIOLATIONS OF THE FEDERAL SECURITIES LAWS against All Defendants with JURY DEMAND (Receipt # AWAWDC-7335926) Attorney Benjamin T.G. Nivison added to party Dibakar Barua(pty:pla), filed by Dibakar Barua. (Attachments: #1 Exhibit)(Nivison, Benjamin) (Entered: 11/16/2021)

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