Key Takeaways:
Rosen Law Firm filed a securities class action against Zillow Group on June 10, covering stock buyers from February 2025 through May 2026.
"Zillow's agreement with Redfin was not a partnership but rather an acquisition of Redfin's business," the Rosen Law Firm said in the filing, which alleges the company made false and misleading statements about the deal structure and antitrust risks.
The Federal Trade Commission sued Zillow and Redfin on Sept. 30, 2025, alleging an unlawful agreement that eliminated Redfin as a competitor in rental housing advertising on internet listing services. Zillow's stock fell 4.6% to $73.48 the next day. On Feb. 10, 2026, Zillow reported fourth-quarter earnings with CFO Jeremy Hofmann saying legal expenses created "180 basis points of margin drag." Shares dropped 16.5% to $45.66 on Feb. 11, extending losses that erased more than $10 billion in market value from the October peak.
The lawsuit also alleges Zillow continued to downplay its legal exposure after the antitrust suit was filed. The class period covers purchasers of Class A or Class C common stock between Feb. 11, 2025, and May 7, 2026 — a 15-month window. Investors who wish to serve as lead plaintiff must move the court by Aug. 10, 2026. No class has been certified, and investors may retain counsel of their choice or remain absent class members.
The Rosen Law Firm, which has recovered hundreds of millions of dollars for investors and was ranked No. 1 by ISS Securities Class Action Services in 2017, is representing the proposed class. The lawsuit seeks to recover damages under federal securities laws.
The lawsuit adds legal and financial uncertainty to Zillow's outlook as it navigates antitrust scrutiny of its Redfin deal. Investors will watch for developments in the FTC case and any settlement discussions ahead of the August lead plaintiff deadline.
This article is for informational purposes only and does not constitute investment advice.
