Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired Zillow Group, Inc. (“Zillow”) (NASDAQ: ZG; Z) common stock between August 5, 2021 and November 2, 2021, inclusive (the “Class Period”).
Zillow operates several real estate websites, and in 2018 the company expanded from just operating the sites to buying houses directly from consumers, renovating those houses, and reselling them for a profit. This business is known as the “Instant Buyer” or “iBuyer” market, and Zillow launched its expansion as “Zillow Offers. By 2021, Zillow Offers’ growth was lagging. In an attempt to jumpstart it, Plaintiff alleges that in Spring 2021, Defendants undertook a series of drastic and risky actions, including applying large “overlays” on top of the values generated by Zillow’s pricing algorithms, which significantly increased purchase offers. Not surprisingly, many homeowners accepted Zillow’s inflated offers and soon the company was touting the “strong demand” for Zillow Offers to investors while concealing the risky overlays that had actually driven growth.
The complaint alleges that, throughout the Class Period, Defendants made false and misleading statements and failed to disclose that: (1) despite operational improvements, Zillow experienced significant unpredictability in forecasting home prices for its Zillow Offers business; (2) such unpredictability, as well as labor and supply shortages, led to a backlog of inventory; (3) as a result, Zillow was reasonably likely to wind down its Zillow Offers business, which would have a material adverse impact on its financial results; and (4) consequently, Defendants’ statements about Zillow’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis at all relevant times.
Current Status of Case:
On October 24, 2024, Defendants appealed the District Court’s ruling which granted Class Certification. On September 26, 2025, the Ninth Circuit Court of Appeals affirmed the District Court’s Order granting Class Certification. Thereafter, on October 24, 2025, Defendants filed a motion with the Ninth Circuit Court of Appeals asking the court to hear the appeal “en banc” meaning by the entire appellate court, which was denied by the Ninth Circuit on January 6, 2026. The District Court action is currently stayed while the appeal is ongoing.
For more information on the case and the Appeal, please visit our website at https://www.ktmc.com/featured-case/zillow-group-inc.
If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.