Technology

Another angry investor sues Zillow over co-marketing

  • Zillow Group faces legal action from investors as it tries to settle with the CFPB over its agent-lender co-marketing program.

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Another Zillow Group shareholder has filed a federal lawsuit against the company and it appears the real estate giant could soon face a slew of similar suits. Spencer Rascoff In the latest complaint, investor James Shotwell alleges Zillow Group and its two top executives -- CEO Spencer Rascoff and CFO Kathleen Philips -- defrauded investors by misrepresenting the extent to which its co-marketing program complied with a federal anti-kickback law. According to the complaint, the company's misrepresentation artificially inflated its stock price, causing investors to lose money after Zillow Group revealed a federal investigation could have a "material impact" on the company's future results. Stephen P. Vargosko, another company shareholder, made the same claims in a lawsuit filed in August. [gview file="https://www.inman.com/wp-content/uploads/2017/09/19717648245-1.pdf"] Both suits seek class-action status on behalf of other Zillow Group investors, which the plaintiffs sa...