The lawsuit centers on Zillow’s agreement with Redfin, alleged antitrust misconduct, and stock declines tied to FTC action, legal-cost disclosures and a judge’s refusal to dismiss the case.
Bleichmar Fonti & Auld LLP said a securities class action has been filed against Zillow Group, Inc. and certain senior executives on behalf of investors in Zillow Class C and Class A common stock, with a lead plaintiff deadline of August 10, 2026. The case, Breidert v. Zillow Group, Inc., et al., No. 26-cv-02016, is pending in the U.S. District Court for the Western District of Washington and asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The complaint focuses on Zillow’s February 6, 2025 agreement with Redfin Corporation, which Zillow allegedly described as a “partnership,” while plaintiffs allege the deal effectively involved a $100 million payment for Redfin to stop competing in multifamily rental listings. BFA points to three stock declines tied to that issue: a 4.33% drop in Zillow’s Class C shares and a 4.5% drop in Class A shares on September 30, 2025 after the FTC (U.S. antitrust regulator) sued Zillow and Redfin; a 16.54% decline in Class C and 17.13% in Class A on February 10, 2026 after Zillow’s CFO said higher legal expenses would create an approximately 200 basis point headwind to Q1 EBITDA margins; and declines of 1.9% and 1.76% on May 7, 2026 after Reuters reported that a federal judge rejected the companies’ bid to end the FTC case.