Zillow Accused of Misleading Investors on Redfin Partnership (1)

A proposed class action against Zillow Group Inc. claims the online real estate marketplace made false statements to investors about its agreement with Rocket Companies Inc.’s Redfin.

Zillow in February 2025 agreed to make an upfront payment of $100 million to Redfin, which would help the competitor transition its rental advertising business to Zillow. But the Federal Trade Commission in September 2025 sued the companies, alleging their partnership violated federal antitrust laws.

Despite public statements to the contrary, “the Redfin Agreement was not a ‘partnership,’ but an anticompetitive acquisition that placed Zillow at materially heightened regulatory risk,” according to the ...