Zillow Faces Securities Class Action Over Redfin Antitrust Allegations

The litigation, filed in the U.S. District Court for the Western District of Washington, centers on a 2025 agreement that Zillow initially marketed as a strategic partnership for multifamily rental listings. According to the complaint, the deal was actually a payment to Redfin to abandon its advertising business and cease competition. This arrangement drew the attention of the FTC, which filed an antitrust complaint in September 2025, labeling the move an end-run around market competition.

Financial fallout for shareholders intensified in February 2026 when Zillow’s CFO disclosed that mounting legal expenses would create a 200-basis-point headwind to EBITDA margins. That disclosure triggered a sharp sell-off, with Class C shares dropping 16.54% and Class A shares falling 17.13%. The legal pressure remains high after a federal judge recently denied the companies’ motion to dismiss the FTC suit. Bleichmar Fonti & Auld LLP, which represents the plaintiffs, has set an August 10, 2026, deadline for investors seeking to serve as lead plaintiffs in the case, captioned Breidert v. Zillow Group, Inc., et al.