Zillow To Pay $212M To Exit Investors' Home-Flipping Suit

October 29, 2026 - 06:48

Zillow has agreed to pay $212.5 million to settle a class action lawsuit brought by investors who accused the company of concealing problems with its home buying business, which has since been shut down. The company informed a federal judge in Washington state of the agreement on Wednesday.

The settlement comes just weeks after the U.S. Supreme Court declined to hear the company's appeal in the case, clearing the way for the litigation to proceed. Investors had alleged that Zillow misled them about the viability and performance of its home-flipping operation, known as Zillow Offers, which bought and sold homes directly. The business was discontinued in 2021 after the company cited difficulties in forecasting home prices and managing inventory at scale.

The lawsuit centered on claims that Zillow and its executives made misleading statements about the risks facing the home buying unit, causing investors to suffer losses when the operation unraveled. The company has not admitted wrongdoing as part of the settlement.

The payout resolves one of the more significant legal challenges tied to Zillow's brief and costly expansion into direct home buying. The company has since refocused on its core marketplace and advertising offerings. A judge will still need to approve the terms of the settlement before it is finalized.