Zillow to pay 212.5 million dollars to settle iBuying shareholder lawsuit

Zillow has agreed to pay 212.5 million dollars to settle a shareholder class action lawsuit, RISMedia, Reuters, and Traders Union reported. The lawsuit followed the collapse of Zillow Offers, the company's home flipping venture. [1][2][3]

According to RISMedia, the settlement resolves claims from investors that Zillow misrepresented its ability to predict and profit from flipping homes during the pandemic market boom. The litigation lasted just under five years after the failed venture caused significant financial losses for the business. [1]

Steve Berman, managing partner of law firm Hagens Berman, told RISMedia that the firm was pleased to obtain the result for investors. RISMedia reported that the firm called the agreement potentially the largest securities settlement in the history of that court district. [1]

Zillow Group, Inc. is an American technology real estate marketplace founded in 2006 by Rich Barton, Lloyd Frink, Spencer Rascoff, David Beitel, and Kristin Acker. [4]