The legal action, captioned Breidert v. Zillow Group, Inc., et al., claims that Zillow paid Redfin $100 million in 2025 as part of an anticompetitive pact to exit the multifamily rental advertising market and stifle competition. While Zillow initially framed the deal as a strategic partnership, the Federal Trade Commission later challenged the arrangement as an illegal attempt to bypass fair market competition.

Investors have seen significant volatility linked to the ongoing legal scrutiny. On February 11, 2026, shares experienced a sharp decline—dropping 16.54% for Class C and 17.13% for Class A stock—after the company’s CFO disclosed that mounting legal expenses would create a 200-basis-point headwind to EBITDA margins. This followed earlier market reactions to the FTC’s initial complaint and a subsequent federal judge’s refusal to dismiss the case. The law firm Bleichmar Fonti & Auld LLP is representing the class, with a lead plaintiff deadline set for August 10, 2026.