The lawsuit, Breidert v. Zillow Group, Inc., et al., claims that Zillow executives failed to disclose material information regarding the company's business practices. Specifically, the complaint alleges that the agreement with Redfin was effectively an acquisition rather than a partnership, exposing Zillow to significant regulatory scrutiny under federal antitrust laws. Plaintiffs contend that the company downplayed its legal exposure even after an antitrust lawsuit was filed, leading to financial losses for shareholders when the true details of the arrangement surfaced.

Kahn Swick & Foti, LLC, the firm representing the potential class, is encouraging investors with substantial losses to review their legal rights. Managing Partner Lewis Kahn stated that those interested in serving as a lead plaintiff must petition the court by the August deadline. The firm, led by former Louisiana Attorney General Charles C. Foti, Jr., specializes in recovering losses from corporate malfeasance and maintains offices across the United States.