Zillow Complaint Overview
The Zillow class action lawsuit asserts securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Zillow Class A and Class C common stock. The class action is pending in the U.S. District Court for the Western District of Washington. It is captioned Breidert v. Zillow Group, Inc., et al., No. 26-cv-02016.
If you lost money on your Zillow investment, you are encouraged to submit your information using the form on this page. You may also email adam@bfalaw.com or call 212.789.3619.
Why is Zillow Being Sued for Securities Fraud?
Zillow has been sued for securities fraud following a significant stock drop resulting from potential violations of the federal securities laws. The decline in Zillow’s stock price caused significant losses to investors.
Zillow is an online real estate and rental marketplace offering a platform for buying, selling, renting, and financing homes. To drive growth, Zillow has recently sought to expand its control over rental listing distributions and increase the scale of its network. On February 6, 2025, Zillow entered into an agreement with Redfin through which Zillow became the exclusive provider of multifamily rental listings on Redfin’s platform and affiliate websites, including Rent.com.
According to the complaint, during the relevant period, Zillow characterized the agreement with Redfin as a “partnership” that would provide Zillow exclusive access to Redfin’s advertising platform.
As alleged, in truth, under the terms of the agreement, Zillow paid Redfin $100 million to stop competing with Zillow, facilitate the transition of its multifamily rental advertising business to Zillow, and close the remainder of its business.
Why did Zillow’s Stock Drop?
On September 30, 2025, the FTC filed a complaint against Zillow and Redfin alleging violations of the federal antitrust laws. According to the FTC complaint, “Zillow and Redfin executed an unlawful agreement to remove competition from [the online rental marketplaces industry], starting with a $100 million payment to Redfin to exit the [Internet Listing Services] market.” The FTC complaint further stated that pursuant to the agreement, “Redfin agreed to stop selling multifamily advertising, to terminate its existing multifamily advertising contracts, and to transition those customers to Zillow” and “turned over its most sensitive [information] to Zillow as it wound down its advertising sales business.” In sum, the FTC alleged, “[t]his agreement is nothing more than an end run around competition on the merits with Redfin for customers…”
This news caused the price of Zillow’s Class C common stock to decline $3.49 per share, or 4.33%, from $80.54 per share on September 29, 2025, to $77.05 per share on September 30, 2025. Zillow’s Class A common stock declined $3.51 per share, or 4.5%, from $77.95 per share on September 29, 2025, to $74.44 per share on September 30, 2025.
On February 10, 2026, Zillow’s CFO told investors that Zillow experienced increased legal expenses which “will result in approximately 200 basis points headwind to EBITDA margins in Q1.”
On this news, the price of Zillow’s Class C common stock declined $9.05 per share, or 16.54%, from $54.71 per share on February 10, 2026, to $45.66 per share on February 11, 2026. Zillow’s Class A common stock declined $9.32 per share, or 17.13%, from $54.42 per share on February 10, 2026, to $45.10 per share on February 11, 2026.
On May 7, 2026, Reuters reported that a “federal judge rejected [Zillow and Redfin’s] request to end a [FTC] lawsuit accusing them of illegally agreeing to suppress competition for online apartment rental listings.”
This news caused the price of Zillow’s Class C common stock to decline $0.85 per share, or 1.9%, from $44.53 per share on May 6, 2026 to $43.68 per share on May 7, 2026. Zillow’s Class A common stock declined $0.79 per share, or 1.76%, from $44.83 per share on May 6, 2026, to $44.04 per share on May 7, 2026.
Zillow Class C (Z) Stock Chart
Image Caption: NASDAQ online chart showing Zillow Group, Inc’s Class C (Z) stock drop following the September 2025, and February and May 2026 revelations.
What is the Zillow Leadership Deadline?
You may ask the Court no later than August 10, 2026, to appoint you as Lead Plaintiff through counsel of your choice.
To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
How Do I Submit My Information?
If you lost money when Zillow common stock dropped in price, you are encouraged to submit your information using the form on this page to speak with an attorney about your rights.
You can also contact:
Adam McCall
amccall@bfalaw.com
212.789.3619
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of any class action lawsuit. The firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS.
BFA attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360, and “SuperLawyers” by Thomson Reuters.
BFA’s notable successes include a recovery of over $900 million in value from Tesla, Inc.'s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
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