Zillow Investor Class Survives Appeal in Suit Over Home-Flipping

Zillow Group Inc. lost its bid to undo a class of investors alleging the real estate website misrepresented its house-flipping business prospects.

The district court properly applied the relevant legal standard—price impact analysis—when determining Zillow didn’t rebut the presumption of reliance established by the Supreme Court, the US Court of Appeals for the Ninth Circuit said Friday in an unpublished opinion.

Under a 2021 Supreme Court ruling, a defendant can rebut a presumption that a class of shareholders relied on the company’s stock price by showing that the alleged misrepresentation didn’t actually affect the market price of the stock, the ...