Zillow Faces Securities Class Action Over FTC Antitrust Claims

The litigation centers on a series of market disclosures tied to an ongoing Federal Trade Commission complaint. In September 2025, the FTC alleged that Zillow and Redfin entered into an unlawful agreement to suppress competition in the online rental marketplace, reportedly involving a $100 million payment to facilitate Redfin's exit from the sector. Following the news, both Zillow Class A and Class C shares experienced sharp declines over consecutive trading sessions.

Financial pressures intensified on February 10, 2026, when CFO Jeremy Hoffman disclosed that the company was grappling with significant elevated legal costs. The market response was immediate and severe, with Class C and Class A stock prices dropping by double-digit percentages. The legal cloud surrounding the company grew darker in May 2026, when a federal judge denied a motion to dismiss the FTC lawsuit, triggering further stock volatility. Investors seeking to participate in the class action are directed to contact Danielle Peyton at Pomerantz LLP to discuss their potential recovery claims.