Zillow faces class action, FTC lawsuit
Analysis based on 26 articles · First reported May 18, 2026 · Last updated Jun 30, 2026
The ongoing legal actions against Zillow, including the class action lawsuit and investigations by law firms, are expected to continue to negatively impact Zillow's stock price and investor confidence. The allegations of an illegal agreement with Redfin and misleading business information could lead to significant financial penalties and reputational damage for both companies.
Zillow Group, Inc. is facing multiple legal challenges, including a class action lawsuit filed by Rosen Law Firm and an investigation by Scott and Scott Attorneys at Law LLP. These actions stem from a lawsuit filed by the United States — Federal Trade Commission on September 30, 2025, which alleged that Zillow and Redfin engaged in an unlawful agreement to suppress competition in the rental advertising market. The class action lawsuit, filed on behalf of Zillow investors, claims that Zillow issued materially false and misleading statements regarding its business operations and its agreement with Redfin. Following the FTC's announcement, Zillow's Class C stock experienced a 4.6% decline. The legal proceedings are ongoing, with investors being encouraged to join the class action to recover losses.
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