The complaint, Breidert v. Zillow Group, Inc., et al., asserts claims under the Securities Exchange Act of 1934, alleging that Zillow misled shareholders regarding the nature of its partnership with Redfin. While Zillow originally characterized the deal as a strategic move to secure exclusive access to advertising platforms, the lawsuit claims the company actually paid Redfin $100 million to exit the multifamily rental advertising market and cease competition.

Financial fallout from the FTC's subsequent antitrust investigation significantly impacted Zillow's market value. Shares experienced a sharp decline on February 11, 2026, dropping 16.54% for Class C stock and 17.13% for Class A shares after the company’s CFO disclosed that mounting legal expenses would create a 200 basis point headwind to EBITDA margins. Investors seeking to participate as lead plaintiffs in the litigation must file with the court by August 10, 2026.