Zillow faces multiple securities investigations amid legal challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 07 2025
0mins
Zillow Group Inc. has seen its stock price decline by 3.31%, hitting a 52-week low, as the company faces multiple investigations regarding potential securities fraud and misleading business practices.
The investigations by Rosen Law Firm and Pomerantz LLP focus on allegations of issuing materially misleading information and premature revenue recognition, which have raised significant concerns among investors. These legal challenges come in the wake of a Federal Trade Commission lawsuit against Zillow for an unlawful agreement with Redfin, which has previously impacted the stock price negatively. The ongoing scrutiny is likely to affect investor confidence and could lead to further declines in stock value.
As Zillow navigates these legal hurdles, the implications for its market strategy and investor relations are profound. The company must address these allegations transparently to restore trust and stabilize its stock performance.
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Analyst Views on Z
Wall Street analysts forecast Z stock price to rise
8 Analyst Rating
3 Buy
5 Hold
0 Sell
Moderate Buy
Current: 36.750
Low
70.00
Averages
87.40
High
100.00
Current: 36.750
Low
70.00
Averages
87.40
High
100.00
About Z
Zillow Group, Inc. helps people find and get the home they want by connecting them with digital solutions, dedicated partners and agents, and buying, selling, financing, and renting experiences. The Company’s affiliates, subsidiaries, and brands include Zillow, Zillow Premier Agent, Zillow Home Loans, Zillow Rentals, Trulia, Out East, StreetEasy, HotPads, ShowingTime+, Spruce, and Follow Up Boss. It helps renters, buyers, sellers, and real estate professionals across all their residential real estate needs through its housing super app, which serves as an ecosystem of connected solutions for the tasks and services related to moving. It provides integrated transaction experience for movers through Zillow, its network of partners, its affiliated brands, and through a comprehensive suite of marketing software and technology solutions for the real estate industry, including ShowingTime+, Follow Up Boss and Spruce. It offers multifamily property managers a variety of advertising products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of Current U.S. Mortgage Rate Trends
- Rate Trend Analysis: According to Zillow, the 30-year fixed mortgage rate is currently at 6.34%, down 7 basis points from last week, while the 15-year fixed rate has increased by 10 basis points to 5.90%, indicating divergent trends that could influence buyer decisions.
- Current Mortgage Rates: The latest data shows a 30-year fixed rate of 6.34% and a 15-year fixed rate of 5.90%, with a 5/1 ARM at 6.29%, providing national averages that serve as benchmarks for buyers in determining their loan options and timing.
- Refinancing Rate Status: Today's refinancing rates indicate a 30-year fixed rate of 6.38%, reflecting a common trend where refinancing rates are typically higher than purchase loan rates, prompting buyers to choose their timing carefully to minimize costs.
- Loan Selection Strategy: When selecting a mortgage, buyers should focus on the annual percentage rate (APR) rather than just the interest rate itself to ensure a comprehensive understanding of the true cost of borrowing, enabling more informed financial decisions.
See More
U.S. Mortgage Rates Continue to Decline
- Mortgage Rate Decrease: According to Zillow data, the 30-year fixed rate fell by 12 basis points to 6.34%, and the 15-year fixed rate dropped by 7 basis points to 5.90%, which will reduce borrowing costs for homebuyers and potentially stimulate activity in the real estate market.
- Adjustable Rate Changes: The 5/1 ARM rate decreased by 19 basis points to 6.29%, allowing buyers to benefit from lower initial rates, which may attract more first-time homebuyers into the market and increase competition.
- Refinancing Rate Trends: The 30-year fixed refinancing rate stands at 6.38%, typically higher than purchase rates, indicating pressure in the refinancing market, prompting borrowers to choose wisely to avoid high-rate burdens.
- Market Outlook: Despite the current rate declines, the MBA forecasts that the 30-year fixed rate will remain between 6.4% and 6.5% over the next few years, suggesting that homebuyers should stay informed about market dynamics to make informed decisions.
See More
Mortgage Rates Continue to Decline
- 30-Year Fixed Rate Drop: According to Zillow data, the 30-year fixed mortgage rate fell by 9 basis points to 6.46%, which will reduce monthly payment burdens for homebuyers, thereby stimulating activity in the real estate market.
- 15-Year Fixed Rate Adjustment: The 15-year fixed mortgage rate decreased by 5 basis points to 5.97%, allowing borrowers aiming to pay off loans quickly to benefit from lower interest expenses, enhancing the appeal of short-term loans.
- Significant Drop in 5/1 ARM Rates: The 5/1 adjustable-rate mortgage saw a substantial decline of 32 basis points to 6.48%, potentially attracting buyers planning to sell in the short term, thus increasing market liquidity.
- Market Outlook: Despite the current rate declines, the MBA forecasts that the 30-year fixed rate will remain between 6.4% and 6.5% through 2026, indicating a cautious market sentiment that may influence homebuyer decisions.
See More
Zillow Under Investigation for Securities Law Violations
- Revenue Recognition Controversy: On March 5, 2024, Spruce Point Capital alleged premature revenue recognition issues in Zillow's Flex model, causing shares to drop 5% from $57.34 to $54.49, highlighting investor concerns over financial transparency.
- Antitrust Lawsuit Impact: On September 30, 2025, the FTC sued Zillow and Redfin for an unlawful agreement, leading to a $3.57, or 5%, decline in stock price from $77.05 to $73.48, indicating market sensitivity to competitive dynamics.
- Rising Legal Costs: On February 10, 2026, Zillow's CFO reported legal expenses exceeded expectations, dragging margins by 180 basis points, resulting in a $9.05, or 17%, drop in stock price to $45.66, reflecting the direct impact of legal risks on financial performance.
- Ongoing Investigation Status: No lawsuit has been filed yet, as Kirby McInerney LLP continues its investigation to determine potential claims under federal securities laws, suggesting that the legal risks may affect future investor confidence.
See More
Rosen Law Firm Investigates Securities Claims Against Zillow Group
- Securities Claims Investigation: The Rosen Law Firm is investigating potential securities claims against Zillow Group (NASDAQ: Z, ZG) for allegedly issuing materially misleading business information, highlighting a commitment to protecting investor rights.
- Class Action Preparation: Shareholders who purchased Zillow securities may be entitled to compensation through a contingency fee arrangement, as the firm prepares a class action to recover investor losses, demonstrating its dedication to safeguarding investor interests.
- FTC Lawsuit Impact: On September 30, 2025, the Federal Trade Commission (FTC) sued Zillow and Redfin over an unlawful agreement to suppress rental advertising competition, resulting in a 4.6% drop in Zillow's Class C stock on October 1, 2025, indicating market concerns regarding the company's compliance.
- Firm Reputation: The Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, underscoring its leadership position in the industry and robust support for investors.
See More
Pomerantz LLP Investigates Zillow for Securities Fraud
- Securities Fraud Investigation: Pomerantz LLP is investigating claims against Zillow Group, Inc. regarding potential securities fraud, raising concerns about the company's and its executives' involvement in unlawful business practices that could harm investors.
- Revenue Recognition Issues: On March 5, 2024, Spruce Point Capital released a report alleging premature revenue recognition in Zillow's Flex model, causing a 4.97% drop in stock price to $54.49 per share, reflecting market concerns over financial transparency.
- Antitrust Lawsuit Impact: On September 30, 2025, the Federal Trade Commission sued Zillow for an unlawful agreement with Redfin that eliminates competition, leading to a 4.63% decline in stock price to $73.48 per share, indicating the direct impact of regulatory risks on the company's valuation.
- Historical Context: Pomerantz LLP, a premier firm in securities class litigation for over 85 years, focuses on fighting for victims of securities fraud, suggesting that this investigation may lead to broader legal consequences affecting Zillow's market reputation.
See More
Analysis of Current U.S. Mortgage Rate Trends
- Rate Trend Analysis: According to Zillow, the 30-year fixed mortgage rate is currently at 6.34%, down 7 basis points from last week, while the 15-year fixed rate has increased by 10 basis points to 5.90%, indicating divergent trends that could influence buyer decisions.
- Current Mortgage Rates: The latest data shows a 30-year fixed rate of 6.34% and a 15-year fixed rate of 5.90%, with a 5/1 ARM at 6.29%, providing national averages that serve as benchmarks for buyers in determining their loan options and timing.
- Refinancing Rate Status: Today's refinancing rates indicate a 30-year fixed rate of 6.38%, reflecting a common trend where refinancing rates are typically higher than purchase loan rates, prompting buyers to choose their timing carefully to minimize costs.
- Loan Selection Strategy: When selecting a mortgage, buyers should focus on the annual percentage rate (APR) rather than just the interest rate itself to ensure a comprehensive understanding of the true cost of borrowing, enabling more informed financial decisions.
See More
U.S. Mortgage Rates Continue to Decline
- Mortgage Rate Decrease: According to Zillow data, the 30-year fixed rate fell by 12 basis points to 6.34%, and the 15-year fixed rate dropped by 7 basis points to 5.90%, which will reduce borrowing costs for homebuyers and potentially stimulate activity in the real estate market.
- Adjustable Rate Changes: The 5/1 ARM rate decreased by 19 basis points to 6.29%, allowing buyers to benefit from lower initial rates, which may attract more first-time homebuyers into the market and increase competition.
- Refinancing Rate Trends: The 30-year fixed refinancing rate stands at 6.38%, typically higher than purchase rates, indicating pressure in the refinancing market, prompting borrowers to choose wisely to avoid high-rate burdens.
- Market Outlook: Despite the current rate declines, the MBA forecasts that the 30-year fixed rate will remain between 6.4% and 6.5% over the next few years, suggesting that homebuyers should stay informed about market dynamics to make informed decisions.
See More
Mortgage Rates Continue to Decline
- 30-Year Fixed Rate Drop: According to Zillow data, the 30-year fixed mortgage rate fell by 9 basis points to 6.46%, which will reduce monthly payment burdens for homebuyers, thereby stimulating activity in the real estate market.
- 15-Year Fixed Rate Adjustment: The 15-year fixed mortgage rate decreased by 5 basis points to 5.97%, allowing borrowers aiming to pay off loans quickly to benefit from lower interest expenses, enhancing the appeal of short-term loans.
- Significant Drop in 5/1 ARM Rates: The 5/1 adjustable-rate mortgage saw a substantial decline of 32 basis points to 6.48%, potentially attracting buyers planning to sell in the short term, thus increasing market liquidity.
- Market Outlook: Despite the current rate declines, the MBA forecasts that the 30-year fixed rate will remain between 6.4% and 6.5% through 2026, indicating a cautious market sentiment that may influence homebuyer decisions.
See More
Zillow Under Investigation for Securities Law Violations
- Revenue Recognition Controversy: On March 5, 2024, Spruce Point Capital alleged premature revenue recognition issues in Zillow's Flex model, causing shares to drop 5% from $57.34 to $54.49, highlighting investor concerns over financial transparency.
- Antitrust Lawsuit Impact: On September 30, 2025, the FTC sued Zillow and Redfin for an unlawful agreement, leading to a $3.57, or 5%, decline in stock price from $77.05 to $73.48, indicating market sensitivity to competitive dynamics.
- Rising Legal Costs: On February 10, 2026, Zillow's CFO reported legal expenses exceeded expectations, dragging margins by 180 basis points, resulting in a $9.05, or 17%, drop in stock price to $45.66, reflecting the direct impact of legal risks on financial performance.
- Ongoing Investigation Status: No lawsuit has been filed yet, as Kirby McInerney LLP continues its investigation to determine potential claims under federal securities laws, suggesting that the legal risks may affect future investor confidence.
See More
Rosen Law Firm Investigates Securities Claims Against Zillow Group
- Securities Claims Investigation: The Rosen Law Firm is investigating potential securities claims against Zillow Group (NASDAQ: Z, ZG) for allegedly issuing materially misleading business information, highlighting a commitment to protecting investor rights.
- Class Action Preparation: Shareholders who purchased Zillow securities may be entitled to compensation through a contingency fee arrangement, as the firm prepares a class action to recover investor losses, demonstrating its dedication to safeguarding investor interests.
- FTC Lawsuit Impact: On September 30, 2025, the Federal Trade Commission (FTC) sued Zillow and Redfin over an unlawful agreement to suppress rental advertising competition, resulting in a 4.6% drop in Zillow's Class C stock on October 1, 2025, indicating market concerns regarding the company's compliance.
- Firm Reputation: The Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, underscoring its leadership position in the industry and robust support for investors.
See More
Pomerantz LLP Investigates Zillow for Securities Fraud
- Securities Fraud Investigation: Pomerantz LLP is investigating claims against Zillow Group, Inc. regarding potential securities fraud, raising concerns about the company's and its executives' involvement in unlawful business practices that could harm investors.
- Revenue Recognition Issues: On March 5, 2024, Spruce Point Capital released a report alleging premature revenue recognition in Zillow's Flex model, causing a 4.97% drop in stock price to $54.49 per share, reflecting market concerns over financial transparency.
- Antitrust Lawsuit Impact: On September 30, 2025, the Federal Trade Commission sued Zillow for an unlawful agreement with Redfin that eliminates competition, leading to a 4.63% decline in stock price to $73.48 per share, indicating the direct impact of regulatory risks on the company's valuation.
- Historical Context: Pomerantz LLP, a premier firm in securities class litigation for over 85 years, focuses on fighting for victims of securities fraud, suggesting that this investigation may lead to broader legal consequences affecting Zillow's market reputation.
See More
