A Zillow investor has filed a proposed securities class action lawsuit against the company, alleging that Zillow misled investors about its $100 million syndication agreement with Redfin. The complaint claims Zillow failed to disclose antitrust risks associated with the deal.
The lawsuit adds further legal and financial pressure on Zillow concerning its Redfin rental syndication deal, potentially impacting investor confidence and the company's financial performance due to ongoing litigation and disclosures.
Zillow is facing a new securities class action lawsuit filed by investor Matt Breidert, stemming from the company's $100 million multifamily rental syndication agreement with Redfin, announced in February 2025. The complaint alleges that Zillow misled investors by characterizing the deal as a "partnership" while failing to disclose significant antitrust risks.
Breidert learned through the Federal Trade Commission's (FTC) lawsuit that regulators viewed the agreement as an acquisition or market-exit strategy that allegedly eliminated a competitor. The FTC, along with attorneys general from five states, is already challenging the syndication deal, claiming it violates antitrust laws by conspiring to reduce competition in the rental listing market.
The investor's lawsuit points to subsequent share declines and legal expense disclosures as evidence of the alleged misrepresentation and failure to disclose material risks associated with the Redfin agreement. Zillow's CEO Jeremy Wacksman and CFO Jeremy Hofmann are also named as defendants in the suit.