Zillow, Investor Clash Over Class-Wide Reliance Case on Appeal

An investor said Zillow Group Inc. relied on a “myopic” definition of a 2021 Supreme Court decision when seeking to decertify the class alleging the real-estate website misled shareholders on its house-flipping business prospects.

That Supreme Court ruling, involving Goldman Sachs Group Inc., found a defendant can rebut a presumption of classwide reliance by showing a gap between a generic corporate misstatement and corrective disclosure, said investor Jeremy Jaeger’s answering brief filed in the US Court of Appeals for the Ninth Circuit on Monday. A gap, he said, that’s “extreme enough to sever any relation between the misstatement and the ...