Zillow Group (Z) Extends Drop on Homebuyer Deception Claims

We recently published 10 Stocks Lost This Big While Wall Street Celebrates. Zillow Group, Inc. (NASDAQ:Z) is one of the worst performers on Monday.

Shares of Zillow Group declined for a third straight day on Monday, slashing 6.57 percent to end at $81.04 apiece as investors sold off positions following a new lawsuit that claimed the company deceived its homebuyers.

The lawsuit, which was filed in Seattle on Friday, claimed that Zillow Group, Inc. (NASDAQ:Z) misled prospective buyers into contacting agents working with the company, and not the agent who listed the homes for sale.

Zillow Group (Z) Extends Drop on Homebuyer Deception Claims

Africa Studio/Shutterstock.com

According to the plaintiff, who is a resident of Oregon, the said practices violate a Washington state consumer protection law and a federal real estate law.

“Zillow is well aware of the potential for ill-gotten gains in this space and has sought to play fast and loose when real people’s basic need for housing is on the table,” a lead attorney was quoted as saying in the lawsuit.

Meanwhile, Zillow Group, Inc. (NASDAQ:Z) said in a statement that it would defend itself from the claims, saying that the lawsuit was a misrepresentation of how the company operates.

It said it stands by its “long-held belief that buyers and sellers deserve to have the choice to work with an agent who is committed to their best interests and only represents them.”

While we acknowledge the risk and potential of Z as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Z and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.