Key Takeaways:
Investors who bought Zillow shares from Feb 11, 2025 to May 7, 2026 face an Aug 10 lead plaintiff deadline in a securities class action.
The lawsuit, Breidert v. Zillow Group, Inc., et al., pending in the US District Court for the Western District of Washington, alleges Zillow and certain executives failed to disclose material information during the class period, violating federal securities laws. The complaint claims Zillow's agreement with Redfin was not a "partnership" but an acquisition of Redfin's business, exposing the company to heightened antitrust scrutiny and liability.
On Sept 30, 2025, the Federal Trade Commission sued Zillow and Redfin, alleging the companies 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. Zillow's Class C stock fell 4.33% to $77.05 that day and a further 4.63% to $73.48 the next day. Class A shares fell 4.5% to $74.44, then 4.37% to $71.18.
The stock has since fallen sharply. On Feb 11, 2026, after Chief Financial Officer Jeremy Hoffman disclosed "ongoing elevated legal expenses" on the fourth-quarter earnings call, Class C shares dropped 17.12% to $45.10, and Class A shares fell 16.5% to $45.66. On May 7, 2026, after Reuters reported a federal judge rejected Zillow and Redfin's request to end the FTC lawsuit, Class C shares fell 1.9% to $43.68, and Class A shares closed at $40.65 by May 11.
Multiple law firms, including Kahn Swick & Foti, Pomerantz, Schall Brown & Schwartz, and Bronstein Gewirtz & Grossman, are soliciting lead plaintiffs. Investors who purchased Zillow Class A or Class C common stock during the class period may petition the court by Aug 10 to serve as lead plaintiff, though appointment is not required to share in any recovery.
The antitrust litigation and securities class action will determine whether Zillow faces material financial liability on top of its legal costs. Investors will watch the next court ruling on the FTC lawsuit and any settlement developments for the company's exposure.
This article is for informational purposes only and does not constitute investment advice.
