Zillow Group (Z) Extends Drop on Homebuyer Deception Claims

We recently published 10 Stocks Lost This Big While Wall Street Celebrates. Zillow Group, Inc. (NASDAQ:Z) is one of the worst performers on Monday.

Shares of Zillow Group declined for a third straight day on Monday, slashing 6.57 percent to end at $81.04 apiece as investors sold off positions following a new lawsuit that claimed the company deceived its homebuyers.

The lawsuit, which was filed in Seattle on Friday, claimed that Zillow Group, Inc. (NASDAQ:Z) misled prospective buyers into contacting agents working with the company, and not the agent who listed the homes for sale.

According to the plaintiff, who is a resident of Oregon, the said practices violate a Washington state consumer protection law and a federal real estate law.

“Zillow is well aware of the potential for ill-gotten gains in this space and has sought to play fast and loose when real people’s basic need for housing is on the table,” a lead attorney was quoted as saying in the lawsuit.

Meanwhile, Zillow Group, Inc. (NASDAQ:Z) said in a statement that it would defend itself from the claims, saying that the lawsuit was a misrepresentation of how the company operates.

It said it stands by its “long-held belief that buyers and sellers deserve to have the choice to work with an agent who is committed to their best interests and only represents them.”

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Disclosure: None. This article is originally published at Insider Monkey.