Zillow Group, Inc. Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against Zillow Group, Inc. (ZG).

If you purchased or held Zillow Group securities and suffered losses, you may be eligible to join this securities investigation and seek compensation.

About Zillow Group

Zillow Group operates online real estate marketplaces and related services in the United States.

Its business lines include the Premier Agent advertising program and a pay-for-performance “Flex” model, where real estate agents pay a fee to Zillow when a transaction closes with a lead generated from the platform.

Zillow also provides mortgage origination through Zillow Home Loans and rental services.

What’s Being Investigated

The investigation centers on allegations that Zillow’s “Flex” referral program may have secretly taken up to 40% of agents’ commissions and steered home buyers to certain agents without adequate disclosure.

According to a nationwide consumer class action filed on September 19, 2025, these practices could violate RESPA and state consumer-protection laws. The complaint alleges that buyers using Zillow.com from September 19, 2021, onward may have been affected by undisclosed referral fees and steering practices.

The suit contends that Zillow’s disclosures about the Flex program and agent compensation may have been incomplete or misleading, raising questions about compliance oversight and internal controls.

Key Timeline

• February 2024: Zillow’s 2023 Form 10-K, filed in February 2024, describes the Flex model and regulatory risks, including exposure to RESPA and consumer protection statutes. Investors point to these disclosures as relevant to the risk oversight discussion.
• September 19, 2025: Nationwide consumer class action filed in the Western District of Washington, alleging Zillow’s Flex program took up to 40% of agent commissions without disclosure and steered buyers, in potential violation of RESPA and state laws.
• September 22, 2025: Reuters reports on the lawsuit; Zillow Group’s Class A shares fall approximately 7.1% following the news. Investors allege this price movement reflects market concern over the potential impact of the allegations.

Why Investors May Be Concerned

Investors and stockholder plaintiffs allege that Zillow may have made misleading statements or omissions about the Flex program’s economics and consumer disclosures.

The complaint contends that the company’s board and officers may have failed to maintain adequate oversight of mission-critical risks related to RESPA compliance and consumer protection.

• Theories raised include possible oversight failures by the Audit Committee and executive management, potential conflicts of interest if Flex referral fees were not properly disclosed, and whether incentive compensation was tied to practices that could expose the company to regulatory or litigation risk.
• Stockholders argue that the board may have lacked a sufficient system to monitor and address compliance risks associated with the Flex program, which is core to Zillow’s revenue model.
• Officer-level responsibility is also alleged, focusing on whether executives with operational control over Flex and consumer disclosures responded appropriately to potential red flags.

Your Rights and Next Steps

This is an active investigation into whether Zillow Group's directors and officers may have breached their fiduciary duties or failed to oversee compliance with key consumer-protection laws. If you were a shareholder during the period in question, you may have certain rights.

Potential next steps:

• Request corporate records under Washington law (RCW 23B.16) to investigate potential wrongdoing
• Participate in a derivative action, which is a lawsuit brought by shareholders on behalf of the company to recover damages or seek governance reforms
• Seek to have the company implement changes to its compliance and disclosure practices if evidence supports such reforms

To proceed with a derivative action in Washington, shareholders must typically show they owned stock at the relevant time, continue to hold it, and either made a demand on the board or can show such a demand would be futile.

You May Be Entitled to Compensation

If you purchased or held Zillow Group securities and suffered losses, you may be eligible to participate in this investigation. Securities investigations are time-sensitive, and your ability to seek recovery or pursue governance changes may depend on prompt action.

To join the Zillow Group investigation or to learn more about your rights, complete the form below.