Zillow Investors’ Suit Over CFPB Probe Tossed Out

Zillow Group Inc. won’t have to keep fighting investors who say the real estate giant misled them about the legality of its advertising program.

Investors didn’t show the online real estate marketing company should’ve warned them about possible Consumer Financial Protection Bureau enforcement activity, according to an Oct. 2 U.S. District Court for the Western District of Washington order dismissing the case. The CFPB ended its three-year probe into Zillow’s advertising practices in June without bringing an enforcement action.

The investors didn’t show that Zillow co-marketing agents “were actually providing unlawful referrals to lenders,” the court said. They also failed ...