Z, ZG Lawsuit Notice: Zillow Anticompetitive Agreement and 17% Stock Drop Trigger Securities Fraud Class Action

A securities fraud class action lawsuit has been filed on behalf of Zillow investors after its stock plummeted over 16% because of Zillow's alleged anticompetitive agreement with Redfin, potentially violating federal securities laws.

Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against Zillow Group, Inc. (NASDAQ: Z, ZG) and certain of the Company's senior executives for securities fraud after significant stock drops resulting from potential violations of the federal securities laws.

The complaint asserts securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Zillow Class C and Class A common stock.

On February 6, 2025, Zillow entered into an agreement with Redfin through which Zillow became the exclusive provider of multifamily rental listings on Redfin's platform and affiliate websites, including Rent.com.

According to the complaint, during the relevant period, Zillow characterized the agreement with Redfin as a "partnership" that would provide Zillow exclusive access to Redfin's advertising platform.

As alleged, in truth, under the terms of the agreement, Zillow paid Redfin $100 million to stop competing with Zillow, facilitate the transition of its multifamily rental advertising business to Zillow, and close the remainder of its business.

On September 30, 2025, the FTC filed a complaint against Zillow and Redfin alleging violations of the federal antitrust laws.

According to the FTC complaint, "Zillow and Redfin 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."

In sum, the FTC alleged, "[t]his agreement is nothing more than an end run around competition on the merits with Redfin for customers…"

This news caused the price of Zillow's Class C and A common stock to decline 4.33% and 4.5%, respectively.

On February 10, 2026, Zillow's CFO told investors that Zillow experienced increased legal expenses which "will result in approximately 200 basis points headwind to EBITDA margins in Q1."

On this news, the price of Zillow's Class C and A common stock declined 16.54%, and 17.13%, respectively.

Finally, on May 7, 2026, Reuters reported that a "federal judge rejected [Zillow and Redfin's] request to end a [FTC] lawsuit accusing them of illegally agreeing to suppress competition for online apartment rental listings."

This news caused the price of Zillow's Class C and A common stock to decline 1.9% and 1.76%, respectively.

If you invested in Zillow, you may have legal options and are encouraged to submit your information to the firm.