Zillow to pay $212.5 million to settle class action over failed real estate venture

By Jonathan Stempel Oct 28 (Reuters) Zillow said on Wednesday it will pay $212.5 million in cash to settle a class action accusing ​the online real estate marketplace of misleading ‌shareholders about its failed Zillow Offers home-flipping venture. The Seattle-based company did not admit wrongdoing in agreeing to the settlement, which requires a judge s approval. Zillow announced the settlement ‌a ​little over three weeks after ⁠the US Supreme Court refused to ⁠hear its appeal from a lower court ruling allowing the case to proceed. The lawsuit began after a 32% plunge in Zillow s stock price ​over two days in November 2021. That decline began after news surfaced that most homes in ⁠the Zillow Offers inventory ⁠were worth less than the company ​paid, and Zillow was looking to sell 7,000 homes. Zillow ​then announced it would close Zillow Offers, ‌take a $304 million writedown, and lay off 25% of its workforce. Shareholders said they were defrauded into buying Zillow shares at inflated