Weekly Real Estate News
Zillow Group has agreed to a proposed $212.5 million cash settlement of a shareholder securities class action tied to its discontinued Zillow Offers home-buying and resale business. The agreement was reached October 27, 2026, and disclosed publicly October 28. It still requires approval by a federal judge.
The litigation, Jaeger v. Zillow Group Inc., No. 2:21-cv-01551-TSZ, is pending in the U.S. District Court for the Western District of Washington. Investors alleged that the company and certain executives made misleading statements about the performance and risks of Zillow Offers in 2021. Zillow has denied wrongdoing; the proposed settlement includes no admission of liability.
Settlement terms and court approval
Under the announced terms, Zillow would deposit $212.5 million into an escrow-held settlement fund within 20 business days after preliminary court approval. Approximately $48 million is expected to be covered by insurance proceeds. Eligible shareholders, after any approved expenses and attorneys’ fees, would receive distributions under a court-approved plan.
The proposed class generally covers investors who acquired Zillow Class A common stock or Class C capital stock between August 5 and November 2, 2021. Related shareholder derivative lawsuits are not resolved by this agreement.
How Zillow Offers unraveled
Zillow announced in November 2021 that it would shut down Zillow Offers after struggling to forecast housing prices and manage the economics of buying and reselling homes. The company recorded a $304 million inventory write-down and announced plans to reduce its workforce by about 25%.
The shareholder case followed those disclosures. Earlier this month, the U.S. Supreme Court declined to hear Zillow’s challenge to a class-certification ruling. The settlement does not establish that the allegations were proven.
The parties must now seek preliminary and final approval from the district court. The executed agreement and any future judicial orders may clarify timing, distribution procedures and other terms.
Sources: Reuters, October 28, 2026; Zillow company statement as reported October 28. The executed court settlement agreement was not independently reviewed.
