As of mid-2026, the Zillow lawsuit update is this: the company is defending at least eight active cases covering antitrust, consumer protection, copyright, securities, and employment law, and not one has been resolved on the merits. Several have cleared motions to dismiss and are moving toward discovery or trial. One was voluntarily dropped but can be refiled. Zillow has denied wrongdoing across all of them.
Here is where each case stands, what it alleges, and what has already been decided.
FTC and State Antitrust Suit Over the Redfin Rental Deal
The largest case against Zillow is a federal antitrust action brought by the Federal Trade Commission and the attorneys general of Virginia, Arizona, Connecticut, New York, and Washington. The FTC filed on September 30, 2025 in the U.S. District Court for the Eastern District of Virginia after a unanimous 3-0 commission vote; the state AGs filed a parallel complaint the following day, and the cases were consolidated in November 2025.1FTC. FTC Sues Zillow, Redfin Over Illegal Agreement to Suppress Rental Advertising Competition2Real Estate News. Zillow Responds to FTC Claims as Antitrust Case Moves Forward
The complaints allege that in early 2025 Zillow paid Redfin $100 million to terminate its multifamily rental advertising contracts, exit that market for up to nine years, and syndicate Zillow’s rental listings exclusively. The FTC calls the arrangement an unlawful acquisition that eliminated a major independent competitor and would raise costs for property managers. The state AGs additionally allege the deal was never reported as required under the Hart-Scott-Rodino Antitrust Improvements Act.3New York Attorney General. Virginia et al v. Zillow Group Inc. and Redfin Corporation Complaint
On May 6, 2026, U.S. District Judge Anthony Trenga denied the companies’ motion to dismiss, finding the complaints sufficiently alleged violations of Section 1 of the Sherman Act, Section 7 of the Clayton Act, and Section 5 of the FTC Act. Judge Trenga applied a “quick-look” antitrust analysis and treated the deal as a “presumptively unlawful” acquisition of assets including customer relationships and key employees.4NAAG. Virginia et al v. Zillow Group Inc. et al.
In a May 20, 2026 filing, Zillow denied breaking antitrust laws and said the deal actually increased the number of rental listings available to consumers. The company did admit it failed to report the agreement under Hart-Scott-Rodino.2Real Estate News. Zillow Responds to FTC Claims as Antitrust Case Moves Forward The case is pending.
Consumer Class Actions Over the Flex and Premier Agent Programs
Two class actions in the Western District of Washington accuse Zillow of hiding fees and steering homebuyers through its agent referral programs. Both center on Flex, under which Zillow connects buyers with affiliated agents and collects up to 40% of the agent’s commission when a deal closes.5Zillow. Zillow Preferred Pricing
Taylor v. Zillow
Filed September 19, 2025 by Portland, Oregon resident Alucard Taylor (Case No. 2:25-cv-01818), this suit alleges Zillow’s “Contact Agent” and “Request a Tour” buttons mislead consumers into thinking they are reaching the listing agent when they are actually routed to a Zillow-affiliated buyer’s agent who has paid for the lead. The agent then pays Zillow up to 40% of the commission, a fee never disclosed to the buyer or seller.6USA Today. Zillow Lawsuit Hidden Agent Fees7Cohen Milstein. Moehrl Law Firms Target Zillow in New Class Action Lawsuit
Brought by Hagens Berman and Cohen Milstein, the complaint asserts claims under the Real Estate Settlement Procedures Act, the Washington Consumer Protection Act, and unjust enrichment. The proposed class covers U.S. consumers who bought a home listed on Zillow using a Zillow-affiliated agent since 2021.
An amended complaint filed November 19, 2025 added claims under the Racketeer Influenced and Corrupt Organizations Act, alleging a conspiracy between Zillow and several brokerage firms to steer homebuyers toward Zillow Home Loans. The amended pleading draws on testimony from twelve current and former agents and loan officers, who described Zillow monitoring agent-client communications through a tool called Follow Up Boss and penalizing agents who recommended competing lenders.8Hagens Berman. Twelve Agents and Loan Officers Confirm Deceptive Zillow Home Loan Practices in Expanded Lawsuit
Zillow moved to dismiss on February 20, 2026, calling the 100-page complaint “heavy on filler but thin on substance.” The company argued that free preapproval letters are not “settlement services” under RESPA and that its terms of use notify users they may be connected to partner agents.9Scotsman Guide. Zillow Requests Dismissal of Class Action RESPA Lawsuit Judge James L. Robart had not ruled on the motion as of June 2026, with briefing extended to an April 17, 2026 re-noting date.10CaseMine. Taylor v. Zillow, Case No. 2:25-cv-01818-JLR
Armstrong v. Zillow
Filed November 7, 2025 by first-time homebuyer Araba Armstrong of Anchorage, Alaska (Case No. 2:25-cv-02226), this second class action targets Zillow Home Loans directly. It alleges Zillow runs an illegal kickback scheme under RESPA by conditioning agents’ access to Premier Agent and Flex leads on hitting quotas for referring buyers to Zillow Home Loans. The complaint also alleges the site uses manipulative interface design, such as pre-checked boxes, to push consumers toward Zillow’s lender without independent comparison shopping.11HousingWire. Zillow Mortgage Lawsuit12U.S. District Court, W.D. Wash. Armstrong v. Zillow Group Inc. Complaint
Agent Antitrust Class Action: Dupuis v. Zillow
Real estate agents have their own antitrust class action pending. Dupuis v. Zillow Group (Case No. 3:26-cv-05049) was filed January 16, 2026 in the Western District of Washington and amended on May 4, 2026. Named plaintiff Stephanie Dupuis alleges Zillow uses its market dominance to coerce agents in the Preferred and Flex programs into steering clients to Zillow Home Loans and buying Follow Up Boss, the contact management system Zillow acquired in 2023. Agents who fail to steer enough clients allegedly face rating demotions, fewer leads, and program termination. Dupuis says her access to Zillow Showcase was cut off in December 2025 after she resisted the steering demands.13Online Marketplaces. Zillow Sued Again as Agent Alleges ZHL Steering Tactics
The complaint also challenges Zillow’s referral fees as excessive. Plaintiffs seek actual and treble damages plus injunctive relief.14Keller Rohrback. Zillow Antitrust Litigation Zillow says the complaint tells a “one-sided story” and that consumers retain control over their choice of lender.
Compass Antitrust Suit and the “Zillow Ban”
In May 2025 Zillow rolled out a policy the industry called the “Zillow Ban”: any publicly marketed property had to be listed on Zillow within 24 hours or be permanently barred from the site. Compass, whose marketing strategy relies on showing properties on its own network before broader MLS distribution, sued in June 2025, alleging monopolization and collusion with Redfin and eXp Realty on similar bans. Compass hired Ken Dintzer, the Justice Department attorney who led the government’s antitrust case against Google.15CBS News. Compass Sues Zillow Ban Real Estate MLS Listings Antitrust Monopoly
After a four-day preliminary injunction hearing in November 2025, Judge Jeannette Vargas denied the injunction on February 6, 2026, finding Compass had not shown Zillow held monopoly power or offered enough evidence of collusion.16Yahoo Finance. Zillow’s Private Listings Ban Can Proceed Amid Legal Fight With Compass, Federal Judge Rules
On March 17, 2026, Zillow launched “Zillow Preview,” letting participating brokerages display pre-market listings before they go active in the MLS. The next day Compass voluntarily dismissed its lawsuit without prejudice, calling the product a reversal of the ban. Zillow disputed that framing and said its Listing Access Standards remain in effect.17Compass Investor Relations. Compass to Dismiss Lawsuit Following Zillow Ban Reversal18Real Estate News. Compass Drops Lawsuit After Zillow Embraces Pre-Marketing Because the dismissal was without prejudice, Compass can refile.
CoStar Copyright Infringement Lawsuit
CoStar Group, which owns Homes.com and Apartments.com, sued Zillow for copyright infringement on July 30, 2025 in the Southern District of New York (Case No. 25 Civ. 6248). CoStar alleges Zillow used nearly 47,000 of its copyrighted, watermarked professional real estate photographs without authorization, displaying them more than 250,000 times and, through syndication agreements, distributing them to Realtor.com and Redfin as well.19Fortune. Zillow Copyright Infringement Lawsuit CoStar
CoStar calls the infringement willful and seeks permanent injunctive relief plus damages it estimates could exceed $1 billion. It cites a prior case, VHT, Inc. v. Zillow, in which the Ninth Circuit in June 2023 affirmed that each infringed photo warranted its own statutory damages award.20U.S. Court of Appeals, Ninth Circuit. VHT Inc. v. Zillow Group Inc.21CoStar Group. CoStar Group Legal
After Zillow moved to transfer in November 2025, CoStar agreed in December, citing witness locations and a related Seattle case.22HousingWire. Zillow Copyright Case Transfer The case is now before Judge Jamal N. Whitehead in the Western District of Washington, where Zillow has filed a motion to dismiss arguing that automated handling of user-uploaded images is not infringement.
Investor Securities Lawsuit
On June 16, 2026, investor Matt Breidert sued Zillow, CEO Jeremy Wacksman, and CFO Jeremy Hofmann, alleging the company misled shareholders about the antitrust risks of the $100 million rental syndication agreement with Redfin. Zillow publicly called the deal a “partnership” and, according to the complaint, failed to disclose the risk that regulators would view it as an unlawful move to eliminate a competitor. The suit points to stock price declines that followed disclosure of the FTC lawsuit and later legal expense disclosures.23HousingWire. Zillow Investor Suit Redfin Syndication
Employment Discrimination Lawsuit
Samuel James Herrera, who describes himself as a “day one” Zillow employee with 14 years at the company and a rise to general manager of rentals for the eastern region, sued Zillow on September 23, 2025 in U.S. District Court in Denver. Herrera alleges he was wrongfully terminated in February 2024 over a $724 business dinner expense, and that the policy was applied selectively to him. His complaint brings race discrimination and retaliation claims under the federal Civil Rights Act and the Colorado Anti-Discrimination Act, alleging blocked advancement and a double standard compared to white executives. He seeks compensatory and punitive damages and a jury trial.24Real Estate News. Former Zillow Vet Sues, Alleges Misconduct Double Standard
Current Status at a Glance
- FTC and state antitrust suit: motion to dismiss denied May 2026; proceeding in E.D. Va.
- Taylor consumer class action: motion to dismiss fully briefed; awaiting ruling from Judge Robart in W.D. Wash.
- Armstrong consumer class action: filed November 2025; early stage.
- Dupuis agent antitrust class action: amended complaint filed May 2026.
- Compass antitrust suit: voluntarily dismissed March 2026 without prejudice; refileable.
- CoStar copyright suit: transferred to W.D. Wash.; motion to dismiss pending.
- Breidert securities suit: filed June 2026; early stage.
- Herrera employment suit: filed September 2025; early stage.
Zillow has denied wrongdoing in every one of these matters. No case has produced a merits ruling or a settlement, so the picture is likely to change repeatedly through 2026 and beyond as motions are decided and discovery begins.