Law Offices of Frank R. Cruz Encourages Zillow Group, Inc. (Z, ZG) Shareholders To Inquire About Securities Fraud Class Action

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of shareholders who purchased or otherwise acquired Zillow Group, Inc. (“Zillow” or the “Company”) (NASDAQ: Z, ZG) Class A or Class C common stock between February 11, 2025 and May 7, 2026, inclusive (the “Class Period”). Zillow investors have until August 10, 2026 to file a lead plaintiff motion.

IF YOU SUFFERED A LOSS ON YOUR ZILLOW GROUP, INC. (Z, ZG) INVESTMENTS, CLICK HERE TO SUBMIT A CLAIM TO POTENTIALLY RECOVER YOUR LOSSES IN THE ONGOING SECURITIES FRAUD LAWSUIT.

You can also contact the Law Offices of Frank R. Cruz to discuss your legal rights by email at [e-mail], by telephone at [phone], or visit our website at www.frankcruzlaw.com.

What Happened?

On September 30, 2025, the Federal Trade Commission announced that it had sued “Zillow and Redfin over an unlawful agreement that eliminates Redfin as a competitor in the market for placing advertising of rental housing on internet listing services (ILSs)-the websites that millions of Americans use to find their next rental home.”

On this news, Zillow’s stock price fell $3.57 per share, 4.63% to close at $73.48 on October 1, 2025, thereby injuring investors.

Then, on February 10, 2026, Zillow announced fourth quarter 2025 earnings. In the earnings call, CFO Jeremy Hofmann stated that legal expenses “[were] higher than we anticipated coming into the quarter and was ultimately 180 basis points of margin drag for Q4.”

On this news, Zillow’s stock price fell $9.05 per share, or 16.5%, to close at $45.66 on February 11, 2026.

Then, on May 7, 2026, Reuters published an article stating that a “federal judge rejected [Zillow and Redfin’s] request to end a [FTC] lawsuit accusing them of illegally agreeing to suppress competition for online apartment rental listings.”

On this news, Zillow’s stock price fell $0.85, or 1.9%, to close at $43.68 per share on May 7, 2026; the stock continued to fall the next day, declining $2.25 per share, or 5.15%, to close at May 8, 2026, thereby injuring investors further.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Zillow’s agreement with Redfin was not a “partnership,” but rather an acquisition of Redfin’s business; (2) as a result of the Redfin Agreement, Zillow faced a materially heightened risk of regulatory scrutiny and liability under federal antitrust laws; (3) upon the filing of an antitrust lawsuit, Zillow continued to downplay its legal exposure; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

Contact Us To Participate or Learn More:

If you purchased Zillow common stock, wish to learn more about this action, or have any questions concerning this announcement or your rights or interests with respect to these matters, please click HERE or contact us at:
Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Telephone: [phone]
Email: [e-mail]
Visit our website at: www.frankcruzlaw.com

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.