Investors Target Zillow in Class Action Lawsuit Over Redfin Deal
A federal class action lawsuit now targets Zillow Group, Inc. following allegations that the company concealed antitrust risks linked to a 2025 strategic partnership with Redfin. Investors who acquired Zillow stock between February 11, 2025, and May 7, 2026, have until August 10, 2026, to seek lead plaintiff status.
The Philadelphia-based firm Berger Montague filed the suit, claiming Zillow failed to disclose that its deal with Redfin effectively transferred multifamily rental advertising operations to Zillow while inviting significant regulatory scrutiny. The complaint alleges that the true nature of the arrangement surfaced on September 30, 2025, when the Federal Trade Commission sued both companies for entering an unlawful agreement that forced Redfin out of the multifamily advertising market.
Financial fallout followed these revelations. By February 2026, Zillow reported that mounting legal expenses were eroding profitability. The situation intensified on May 7, 2026, when a federal court denied the companies' motion to dismiss the FTC action. Shares of Zillow’s Class A and Class C common stock saw material declines following each of these developments. Investors seeking to participate in the litigation may contact Andrew Abramowitz at 215-875-3015 or Caitlin Adorni at 267-764-4865.
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