Hagens Berman Secures $212.5 Million Settlement in Zillow Investor Class Action

Attorneys achieve what may be the largest single securities settlement in the history of Washington’s Western District federal court

SEATTLE--(BUSINESS WIRE)--Investor-rights attorneys at Hagens Berman today announced a $212.5 million settlement reached with Zillow on behalf of investors, potentially the largest single securities settlement in the history of the Western District of Washington federal court.

The lawsuit, Jaeger v. Zillow Group Inc. et al, was originally filed Nov. 16, 2021, in the U.S. District Court for the Western District of Washington after Zillow investors allegedly suffered losses related to its direct home-buying and selling business, Zillow Offers business.

Investors alleged that, following the expansion of its Zillow Offers business, Zillow and certain of its executives made material misrepresentations and omissions about Zillow Offers’ purchasing volume, pricing accuracy and operational improvements. This allegedly caused the price of Zillow’s common stock to be inflated.

According to the complaint, the price of Zillow common stock then fell when the truth was allegedly disclosed through a series of corrective disclosures. The complaint alleges that on Nov. 2, 2021, Zillow announced that, due to unpredictability in forecasting home prices, it was winding down Zillow Offers, cutting its workforce by 25% and taking a $304 million write-down on housing inventory purchased in Q3 2021. The complaint alleges Zillow also said it anticipated a loss of $240 million to $265 million on homes it expected to purchase in Q4 2021.

“We are incredibly pleased to obtain this result for investors, what we believe to be the largest single securities settlement in Western District of Washington history,” said Steve Berman, managing partner of Hagens Berman which served as court-appointed class counsel in the lawsuit. “Our securities team works tirelessly to protect the rights of investors.”

The settlement agreement follows the Supreme Court’s denial to hear an appeal of class certification in October 2026, allowing Zillow investors to proceed with their claims. Both the district court and the Ninth Circuit Court of Appeals affirmed class certification.

Zillow reported the settlement in its 8-K filing today. Hagens Berman will ask the court to grant preliminary approval of the settlement.

Next Steps for Zillow Investors

The class of investors includes those who purchased or acquired Zillow Group Inc. Class A common stock or Class C capital stock between Aug. 5, 2021, and Nov. 2, 2021, dates inclusive. Excluded from the class are defendants, Zillow’s directors, legal representatives or officers, as well as their immediate families, legal representatives, heirs, agents, successors and assigns.

Next, the court will review the settlement agreement which, if favored by the court, will then proceed through preliminary and final approval, including a period for class members to exclude themselves or object to the settlement. The settlement claims administrator will provide notice to the class, following the court’s review.

Read more about the securities class-action lawsuit against Zillow on behalf of investors.

About Hagens Berman

Hagens Berman is a global plaintiffs’ rights complex litigation law firm with a tenacious drive for achieving real results for those harmed by corporate negligence and fraud. Since its founding in 1993, the firm’s determination has earned it numerous national accolades, awards and titles of “Most Feared Plaintiff’s Firm,” MVPs and Trailblazers of class-action law. More about the law firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

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