Zillow Lawsuit 2025: What Is Zillow Being Sued For Right Now?

You’ve heard “Zillow is being sued” and want the straight answer, not courtroom jargon. Here it is: there isn’t just one case. When people say that in 2025, they’re usually talking about a handful of high‑profile disputes-antitrust claims tied to how listings are displayed, shareholder suits from the iBuying era, old fights over Zestimates, and a past marketing compliance action. I’ll break down what each one actually alleges, where it stands, and what (if anything) you should do differently if you’re buying, selling, or working in the industry.

• TL;DR
• Zillow has faced multiple legal actions: antitrust (REX v. Zillow), securities (Zillow Offers/iBuying), Zestimate challenges, and a past RESPA marketing settlement.
• The big antitrust case (REX v. Zillow) largely went Zillow’s way at trial in 2023; appeals and related motions carried into 2024.
• Shareholder claims tied to the shutdown of Zillow Offers alleged misleading statements; litigation continued through 2024 per Zillow’s SEC filings.
• Courts have generally rejected claims that Zestimates are illegal appraisals; they’ve been treated as opinions with disclaimers.
• For everyday users: search, list, and transact as normal; keep using verified comps, real appraisals, and written disclosures.

What Zillow is being sued for: the cases that matter in 2025

Quick framing before we unpack the details: this is not one giant case. It’s a set of legal threads that pop up in headlines at different times. Most folks asking this question today are aiming at four buckets-antitrust (how listings are shown), securities (iBuying fallout), Zestimates (value opinions), and an older marketing compliance action.

1) Antitrust & unfair competition: REX v. Zillow (the “two-tab” listings fight)

What the case alleged: Startup brokerage REX Real Estate sued Zillow and the National Association of REALTORS (NAR) in 2021, claiming Zillow’s change to a two‑tab search design (“Agent listings” vs “Other listings”) buried non‑MLS homes and strangled REX’s traffic. REX said this was an anticompetitive move tied to MLS/NAR rules, harming consumers and new entrants.

What Zillow said: Zillow argued it adopted the design to comply with data‑licensing rules from multiple listing services (MLSs), to make clear which homes came via MLS feeds versus other sources. According to Zillow, the split was a disclosure choice, not a scheme to suppress competition.

Where it stands: In 2023, a federal jury in Washington largely sided with Zillow on the antitrust claims. Post‑trial motions and appeals activity continued into 2024. Bottom line for users: the case didn’t force Zillow to shut down or overhaul search nationwide. You may have seen tab labels change over time, but the core consumer experience carried on. Authoritative records: U.S. District Court for the Western District of Washington (REX v. Zillow); filings and orders are public docket materials.

Why it matters: This was the most headline‑grabbing “Zillow is being sued” story in recent years because it went to a full jury trial, with broader implications for how big platforms display listings.

2) Securities class actions: Zillow Offers (the iBuying shutdown)

What the cases alleged: After Zillow shut down Zillow Offers (its home‑flipping business) in late 2021, shareholders filed suits claiming the company understated operational risks and overstated the iBuying model’s reliability. The claims landed under Section 10(b) and Rule 10b‑5 of the Securities Exchange Act-classic “you misled investors” territory.

What Zillow said: The company has generally denied wrongdoing, arguing it disclosed risks and made forward‑looking statements in line with securities laws.

Where it stands: Through 2024, Zillow’s annual report (Form 10‑K) continued to reference ongoing securities litigation tied to Zillow Offers in the Legal Proceedings section. Outcomes in securities cases can take years. Check Zillow Group, Inc. Form 10‑K (2023) and subsequent 10‑Qs/10‑Ks for status updates straight from the source.

Why it matters: This is the second big reason you’ll hear “Zillow is being sued.” It’s about investor disclosures after a high‑profile business pivot that went south.

3) Zestimate challenges (valuation as “opinion,” not an appraisal)

What was argued: Some homeowners sued years back saying the Zestimate (Zillow’s automated estimate) was an unlicensed appraisal that hurt sales. One notable example was an Illinois case in 2017. Courts have repeatedly treated Zestimates as opinions with disclaimers, not formal appraisals, and dismissed claims. See, for instance, Patel v. Zillow (N.D. Illinois, 2017) and similar state actions.

Where it stands now: This area isn’t a live, headline‑dominant fight in 2025. The legal pattern is that automated value estimates, presented with clear disclaimers and data sources, are speech/opinion rather than regulated appraisals.

Why it matters: Sellers still ask whether a low Zestimate is “illegal.” It isn’t. But it can influence buyer perception, which is why you pair it with comps, an agent CMA, or a licensed appraisal.

4) RESPA marketing compliance (past regulator action)

What happened: In 2017, the Consumer Financial Protection Bureau (CFPB) announced a consent order relating to Zillow’s co‑marketing program, alleging it ran afoul of the Real Estate Settlement Procedures Act (RESPA) anti‑kickback rules. Zillow paid a civil penalty without admitting wrongdoing and updated its practices. This is closed, but it’s often resurfaced in “what did Zillow do wrong?” conversations. Primary source: CFPB Consent Order (2017).

5) Trade secrets/IP (historical)

A purely historical note: In 2016, Zillow settled a trade‑secrets case brought by Move, Inc. (operator of Realtor.com) and News Corp for $130 million. It’s not current, but it’s part of the long tail of “Zillow lawsuit” headlines you’ll still bump into. Source: court filings and company statements at the time.

Three plain‑English takeaways about the legal picture:

• The splashy antitrust case hit trial and didn’t upend Zillow’s core product. Appeals/related matters ran through 2024.
• Investor suits over iBuying are about disclosures to shareholders, not how you browse or post a listing.
• Courts treat Zestimates as opinions, so those challenges haven’t changed pricing or appraisal rules you rely on.

What this means for buyers, sellers, agents, and investors

I live and breathe property, and I’ll give it to you straight: most of this won’t change your day‑to‑day if you’re browsing, touring, or listing a home. But there are smart adjustments for each group.

If you’re buying

• Use multiple data points. A portal estimate is a starting point, not a price tag. Pull recent sold comps from your agent or local MLS, and check the property’s history and days on market.
• Learn the tabs and labels. Whether it says “Agent Listings” and “Other” or something similar, treat both as leads to homes. Don’t assume one tab is “worse” inventory. Click through and compare.
• Ask for source verification. If the listing is syndicated from an MLS, you’ll usually see it in the data attribution. If it’s a for‑sale‑by‑owner (FSBO) or builder direct, verify details with the seller or builder.
• Reality‑check estimates. Want a reality check? Ask your agent for a Comparative Market Analysis (CMA) and, if you’re serious, order a licensed appraisal post‑offer. That’s the number the bank will trust, not a website estimate.

If you’re selling

• Don’t anchor to a single estimate. If the Zestimate undercuts your list price, counter it with a tidy packet: three best comps, your home’s upgrades, and any recent inspections. Buyers respect data.
• Claim and correct your listing. If something’s wrong (beds, baths, square meters/feet), fix it via “Claim your home” or through your listing agent. The fastest way to change buyer perception is to change the facts on the page.
• Price to the market you’re in. In tight markets, list near the comp trendline and let demand work. In slow markets, consider a tighter price band and stronger presentation (photos, floor plan, 3D tour).

If you’re an agent or broker

• Stay RESPA‑clean. Pay for advertising, not referrals. Split costs at fair market value. Keep written agreements and invoices for co‑marketing. If it smells like a kickback, it probably is.
• Audit your lead flows. Document where leads come from (portal ads, social, referrals). If you split costs with lenders or title companies, match spend to actual exposure-not closed deals.
• Explain the tabs to clients. A 60‑second walkthrough of how listings are sourced and labeled saves hours of confusion later.
• Keep screenshots and timestamps. If a listing placement looks off or something critical goes missing, capture evidence and escalate through the portal’s support channel and your MLS.

If you’re an investor

• Read the 10‑K Legal Proceedings section. That’s your single best source for litigation status and risk language. Watch for changes quarter to quarter.
• Size the financial exposure. Ask: Is this damages exposure existential (class actions with statutory damages) or manageable (defense costs, settlements within insurance)? The table above helps place scale.
• Listen for product impacts on earnings calls. Legal risk that forces UX or data‑licensing changes is often more material than one‑time legal costs.

Heuristics you can use across the board:

• Portal estimates = opinion, not appraisal. Treat them like a weather forecast-useful, not definitive.
• Antitrust cases move slow. Unless you see a court order mandating product changes, assume incremental tweaks, not overnight overhauls.
• Securities suits mostly hit investors, not end‑users. Look for disclosure language changes; don’t expect the app to vanish.
• Ethics beats “growth hacks.” If your marketing depends on gray‑area referrals, rework it now. Regulators don’t love creativity in this slice of the industry.

Quick answers, timelines, and what to do next

Mini‑FAQ

• Is Zillow shutting down because of lawsuits? No. The flagship marketplace keeps running. The high‑profile antitrust case didn’t order a shutdown.
• Does this change buyer broker commissions on Zillow? Not directly. Commission changes have been driven by broader settlements and policy shifts in U.S. real estate, not this case alone. Always read the latest MLS/NAR policy notices in your region.
• Are Zestimates illegal appraisals? Courts have treated them as opinions with disclaimers, not regulated appraisals. You still rely on licensed appraisals for lending.
• Did Zillow admit wrongdoing in the RESPA matter? In 2017, Zillow agreed to a CFPB consent order and civil penalty without admitting liability. It changed program practices.
• Can I get money from any class action? Securities class actions, if they settle, are for eligible shareholders within specific periods. Consumers usually aren’t paid out in those.
• What if a listing disappeared or moved tabs? First, check filters and location boundaries. Second, check the data source label. Third, capture screenshots and contact support; agents should also open an MLS ticket.
• Where do I find official status updates? Company SEC filings (10‑K, 10‑Q) under Legal Proceedings; federal court dockets (REX v. Zillow in W.D. Washington); and regulator releases (CFPB 2017 order).

Cheat‑sheet: how to sanity‑check a headline like “Zillow is being sued”

1. Identify the bucket: antitrust, securities, Zestimate, or past marketing action.
2. Check the date: a 2017 story is not today’s problem.
3. Look for the venue: which court or regulator? That tells you the stakes.
4. Scan for remedy: is someone asking for product changes, damages, or both?
5. Verify in primary sources: court docket, SEC filings, or regulator notice.

Risks and mitigations by persona

• Buyer risk: Misreading listing labels and missing a home you’d like. Mitigation: Explore all tabs, save searches with broad filters, and cross‑check on your agent’s MLS portal.
• Seller risk: Anchoring to a single website estimate. Mitigation: Price using comps, an agent CMA, and-if uncertain-a pre‑listing appraisal.
• Agent risk: Inadvertent RESPA slip‑ups in co‑marketing. Mitigation: Pay only for ads/exposure; keep clean invoices and agreements; avoid “per‑closing” arrangements.
• Investor risk: Underestimating long‑tail legal costs. Mitigation: Track disclosed legal reserves, insurance coverage, and any mandated product changes.

Credible sources to know (name‑only, no links):

• U.S. District Court for the Western District of Washington (REX v. Zillow docket and orders)
• Consumer Financial Protection Bureau (2017 Consent Order re: co‑marketing/RESPA)
• Zillow Group, Inc. Form 10‑K (2023) and subsequent 10‑Qs/10‑K, Legal Proceedings section
• U.S. District Court, Northern District of Illinois (Patel v. Zillow, 2017)

Next steps

• Buyers: Keep using portals as a broad search tool, but base offers on comps and appraisals. If you’re wondering whether some tab is hiding homes, test it: run the same search in both tabs and on your agent’s MLS link.
• Sellers: Claim your home, correct inaccuracies, and use a side‑by‑side comp sheet when buyers raise Zestimates. Facts beat opinions.
• Agents: Refresh your RESPA compliance checklist this quarter. Document every co‑marketing dollar. If you co‑brand ads with a lender, split costs by exposure, not closed deals.
• Investors: Read the latest 10‑Q before earnings. Flag any new legal reserves or language about potential product changes.

Troubleshooting common scenarios

• “My FSBO home barely gets traffic.” Add professional photos, a floor plan, and a 3D tour. Then syndicate via a flat‑fee MLS service to boost exposure in “Agent listings.”
• “The Zestimate is 8% below my target.” Publish your upgrade list and recent inspection summary in the listing docs. Ask your agent to pre‑email comps to likely buyers.
• “A lender offered to ‘cover marketing’ for my buyer leads.” If payment tracks closings or referrals, decline. If it’s a true ad buy at market rates with receipts, and you split cost by actual exposure, you’re on safer ground.
• “News says there’s a new lawsuit.” Check the date, the court, and the remedy requested. If it isn’t seeking product changes, your client workflows probably won’t change tomorrow.

One last clarity note: Lawsuits evolve. If a new filing drops after this article, the fastest legit update will be in Zillow’s SEC filings and on the court docket. That’s where journalists and analysts look first. If you’re scanning headlines, match what you read against those primary sources.

Bottom line: The phrase Zillow lawsuit 2025 usually points to one of a few well‑known disputes. The antitrust case dominated the news cycle but didn’t flip the consumer product on its head. Securities suits live in the investor realm. Zestimate fights haven’t changed how you price or appraise. And the old marketing compliance issue is just that-old. Keep shopping, listing, and advising with good data and clean disclosures, and you’ll be fine.