My opinion is this wasn’t a failure to disclose. People see their quarterly financials and know that they’re buying a bunch of homes.
I think I saw a quote from Zillow’s CEO that said they were pausing ibuying because of a contractor shortage. Maybe that’s true. But if it was to cover up their piling losses, then that’s a credible lawsuit.
Whoever bought the stock thinking that adding billions of balance sheet debt in a relatively illiquid asset class was risk free, take a class in finance lol.