On September 22, 2025, news broke of a nationwide class-action lawsuit filed against Zillow Group in the U.S. District Court for the Western District of Washington. The lawsuit accuses the company of deceptive practices related to its agent referral program.
The complaint alleges that Zillow used its market position to unlawfully inflate home purchase prices for buyers working with Zillow-affiliated agents. This raises questions about potential legal and reputational implications for the company.
This legal challenge represents a significant risk, as it could lead to financial liabilities and impact investor confidence in Zillow's business practices and competitive edge in the real estate market.
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