Zillow Agrees to $212.5 Million Settlement in Investor Class Action Over Failed Home-Flipping Venture
Zillow settled a five-year securities fraud lawsuit related to its discontinued iBuyer program, agreeing to pay $212.5 million pending court approval.
Online real estate marketplace Zillow announced on October 28, 2026, that it has agreed to pay $212.5 million in cash to settle a class action lawsuit brought by investors. The suit alleged that company leaders misled shareholders about the risks associated with Zillow Offers, the firm's now-defunct home-flipping venture.
The settlement, known as the Jaeger case after lead plaintiff Jeremy Jaeger, was filed in the U.S. District Court for the Western District of Washington and disclosed in an 8-K form to the U.S. Securities and Exchange Commission. The plaintiffs accused Zillow of inflating its stock price by failing to disclose the unpredictability of its home price forecasts, which contributed to the collapse of the iBuyer program.
This resolution comes shortly after the U.S. Supreme Court declined to hear Zillow's petition to review the lower court's class certification ruling. Steve Berman, managing partner of Hagens Berman, the court-appointed class counsel, described the outcome as likely the largest single securities settlement in the history of the Western District of Washington. A spokesperson for Zillow stated the company is pleased to reach a resolution.
Under the terms, Zillow will deposit the funds into a settlement account within 20 business days of preliminary court approval. The class includes investors who purchased Zillow's Class A or Class C stock between August 5, 2021, and November 2, 2021. A period between preliminary and final approval hearings will allow class members to opt out or object.