Zillow Investor Class Rehearing Denial Spurs High Court Question

Zillow Group Inc. failed to convince the Ninth Circuit to revisit the shareholders’ class status in a securities case, raising questions on whether a defense strategy for class certification involving a mismatch between misrepresentations and later corrections is ready for US Supreme Court review.

The circuit court denied Zillow’s bid for a panel rehearing and rehearing en banc in a suit alleging the real estate marketer had misrepresented its home-flipping business’ pricing model, letting stand a three-judge ruling issued in September. Attorneys across the securities litigation bar have been monitoring such rulings as courts nationwide grapple with class certification ...