Zillow Agrees to Pay $212.5 Million to Settle 2021 Securities Class Action

Zillow Group agreed to pay $212.5 million in cash to settle a long-running securities class action brought by shareholders who bought its stock in the fall of 2021, the company disclosed Wednesday.

The online real estate company signed the stipulation of settlement on Oct. 27 to resolve all claims against all defendants in the consolidated case captioned Jaeger v. Zillow Group, Inc., et al., pending in federal court in the Western District of Washington, according to an 8-K filed on Wednesday.

Who is covered

The settlement class includes anyone who bought or otherwise acquired Zillow Class A common stock or Class C capital stock between Aug. 5, 2021, and Nov. 2, 2021, and was allegedly damaged, subject to certain exclusions.

Zillow said the agreement contains no admission of liability or wrongdoing by any of the defendants.

How the money flows

Zillow will pay, or cause to be paid, the $212.5 million into an escrowed settlement fund within 20 business days after the court preliminarily approves the deal. About $48 million of the payment is expected to come from insurance proceeds.

The fund will cover class notice and administration costs, court-approved attorneys' fees and expenses, and cash payments to eligible class members under a court-approved plan of allocation.

Steps before it's final

The settlement still needs court approval. If the court grants preliminary approval, class members will be notified and given a chance to object or opt out, and the court will then hold a fairness hearing on final approval.

The deal can be terminated in certain circumstances, including by the defendants if opt-out requests reach a confidential threshold of purchased shares set out in a separate agreement.

Once effective, class members who do not opt out will release Zillow, the other defendants and certain related parties from claims tied to the allegations in the case or to buying the stock during the class period.

The settlement does not resolve related shareholder derivative actions, all of which remain pending, Zillow said. The company plans to file the settlement agreement as an exhibit to its annual report for fiscal 2026.

Sources

1. Zillow Group Form 8-K reporting securities class action settlement agreement, filed Oct. 28, 2026 (accession 0001617640-26-000063)

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

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