A securities fraud class action has been filed against Zillow Group and certain senior executives over alleged misrepresentations about an agreement with Redfin Corporation. The lawsuit, pending in the U.S. District Court for the Western District of Washington, claims Zillow characterized the deal as a partnership providing exclusive access to Redfin's advertising platform, while in reality it paid Redfin $100 million to stop competing and exit the multifamily rental advertising business. The complaint follows a Federal Trade Commission lawsuit alleging an unlawful agreement to suppress competition, and points to stock drops including a 16.54% decline in Class C shares and a 17.13% decline in Class A shares on February 11, 2026, after Zillow's CFO disclosed increased legal expenses. Investors have until August 10, 2026 to seek lead plaintiff appointment.
Zillow Group Inc Class CSecurities fraud class action and FTC lawsuit allege anticompetitive agreement with Redfin, causing stock drops and increased legal expenses.
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