Investors who bought Zillow Group Class A or Class C stock from August 5 to November 2, 2021 are covered by a $212.5 million securities settlement Zillow agreed to on October 27, 2026. The deal still needs court approval, and there is no claim form or deadline yet.
What Is This About?
Zillow Group, Inc. has agreed to pay $212.5 million in cash to settle Jaeger v. Zillow Group, Inc., et al., No. 2:21-cv-01551-TSZ, a securities class action in the U.S. District Court for the Western District of Washington. Zillow signed the settlement agreement on October 27, 2026, and disclosed it to investors in a filing with the Securities and Exchange Commission. A notice of settlement was filed on the court docket on October 28.The shareholders alleged that Zillow and some of its executives painted an overly positive picture of Zillow Offers, the company's business of buying and reselling homes, so that investors bought shares at inflated prices. Zillow's lawyers denied the securities fraud claims, and the settlement agreement contains no admission of liability or wrongdoing by any defendant. Judge Thomas S. Zilly must approve the deal before any money is paid.
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What Happened to Zillow Offers
Zillow Offers bought homes directly from sellers and resold them. In November 2021, after reports that most of the homes in its inventory were worth less than Zillow had paid and that the company was looking to sell about 7,000 homes, Zillow's stock fell 32% over two days, according to Reuters. Zillow then shut down Zillow Offers, took a $304 million writedown and cut about a quarter of its workforce.The lawsuit was filed in federal court in Seattle that same month. The certified class covers investors who bought Class A or Class C shares from August 5 through November 2, 2021.
How the Case Reached a Settlement
Judge Zilly certified the investor class on August 23, 2024. Zillow appealed that ruling, and the U.S. Court of Appeals for the Ninth Circuit affirmed it in September 2025. Earlier in October 2026, the U.S. Supreme Court declined to hear Zillow's appeal, and the company agreed to settle a little over three weeks later. Before the settlement, a jury trial had been scheduled for September 13, 2027.Because the class was certified before the settlement, the court had already approved a notice plan for the litigation and named Strategic Claims Services, Inc. as the notice administrator in June 2026. The settlement notice and claims process will be set out in the court's preliminary approval order.
What the Settlement Provides
Under the agreement disclosed by Zillow, the company will pay $212.5 million into an escrow account within 20 business days after the court grants preliminary approval. About $48 million of that is expected to come from Zillow's insurers. The fund will cover the cost of notice and administration, court-approved attorneys' fees and expenses, and cash payments to eligible class members.No per-share payment has been published. Securities settlements pay out under a plan of allocation that weighs how many shares each claimant bought, when they bought and sold them, and how many valid claims are filed. That plan will be part of the settlement notice.
The settlement does not resolve the related shareholder derivative lawsuits against Zillow's officers and directors, which remain pending.
What Happens Next
The next step is a motion asking Judge Zilly to grant preliminary approval. If he does, notice goes to class members, a claim form and filing deadline are published, and the court sets a fairness hearing on final approval. Payments come only after final approval and the resolution of any appeals. As of October 29, 2026, no preliminary approval motion, claim website or deadline had been posted.Questions
Who is covered by the Zillow securities settlement?
The settlement class is people who acquired Zillow Group Class A or Class C stock from August 5, 2021 through November 2, 2021, and were allegedly damaged, subject to exclusions set out in the settlement agreement. The final class definition and exclusions will appear in the court-approved notice.
Can Zillow investors file a claim yet?
There is no claim form or claim deadline yet. The court must first grant preliminary approval. After that, a court-approved notice, claim form and deadline are normally published on a settlement website set up by the claims administrator.
How much will each Zillow investor receive?
No per-share figure has been published. In securities settlements, the net fund after court-approved fees and costs is divided under a plan of allocation that depends on how many shares each claimant bought and sold, when, and how many valid claims are filed. That plan will be part of the settlement notice.
Is this the same as the Zillow transaction fee lawsuit?
It is a separate case. The $212.5 million settlement resolves investor claims about statements made while Zillow ran its Zillow Offers home-buying business in 2021. The transaction fee lawsuit is a consumer case over fees charged to renters.
Sources
• Zillow Group, Inc. Form 8-K, Item 1.01 — Settlement Agreement (SEC)• CourtListener — Jaeger v. Zillow Group, Inc., No. 2:21-cv-01551 (W.D. Wash.) docket
• Reuters — Zillow to pay $212.5 million to settle class action over failed real estate venture
