A securities fraud class action has been filed against Zillow Group and certain senior executives over an allegedly anticompetitive agreement with Redfin Corporation. The lawsuit, pending in the U.S. District Court for the Western District of Washington, claims Zillow mischaracterized the deal as a partnership while it actually paid Redfin $100 million to exit the multifamily rental advertising market. The complaint follows a Federal Trade Commission lawsuit alleging the agreement unlawfully suppressed competition, and points to three stock drops: a 4.33% decline for Class C shares and 4.5% for Class A shares on September 30, 2025, after the FTC filed its complaint; a 16.54% drop for Class C and 17.13% for Class A on February 10, 2026, when Zillow's CFO disclosed increased legal expenses would create a 200-basis-point headwind to EBITDA margins; and a 1.9% decline for Class C and 1.76% for Class A on May 7, 2026, after Reuters reported a federal judge rejected the companies' bid to dismiss the FTC case. Investors have until August 10, 2026, to seek lead plaintiff appointment.
Zillow Group Inc Class CZillow faces securities fraud class action and FTC lawsuit over alleged anticompetitive deal with Redfin, causing stock drops and legal expenses.
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