The law firm of Kirby McInerney LLP is investigating potential claims against Zillow Group, Inc. (“Zillow” or the “Company”) (NASDAQ: Z). The investigation concerns whether the Company and/or members of its senior management may have violated federal securities laws or engaged in other unlawful business practices.

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What Happened?

On March 5, 2024, Spruce Point Capital released a report alleging potential premature revenue recognition issues in Zillow’s Flex model, in which the Company recognizes revenue when a lead is sent to an agent, despite the agent then having up to two years to close a deal. On this news, the price of Zillow shares declined by $2.85 per share, or approximately 5%, from $57.34 per share on March 4, 2024 to close at $54.49 on May 5, 2024.

Then, on September 30, 2025, the Federal Trade Commission announced that it had sued “Zillow and Redfin over an unlawful agreement that eliminates Redfin as a competitor in the market for placing advertising of rental housing on internet listing services (ILSs)-the websites that millions of Americans use to find their next rental home.” On this news, the price of Zillow shares declined by $3.57 per share, or approximately 5%, from $77.05 per share on September 30, 2025 to close at $73.48 on October 1, 2025.

Finally, on February 10, 2026, Zillow announced fourth quarter 2025 earnings. In the earnings call, CFO Jeremy Hofmann stated that legal expenses “was higher than we anticipated coming into the quarter and was ultimately 180 basis points of margin drag for Q4. Obviously, we laid out what we think for 2026 from a legal cost perspective as well, and it will be a drag, but it's not stopping us from expanding margins, which we expect to do throughout 2026.” On this news, the price of Zillow shares declined by $9.05 per share, or approximately 17%, from $54.71 on February 10, 2026 to close at $45.66 on February 11, 2026.

What Should I Do?

At this stage, no lawsuit has been filed. The investigation is ongoing to determine whether claims may be brought under federal securities laws.

If you purchased or otherwise acquired Zillow securities, have information, or would like to learn more about this investigation, please contact Lauren Molinaro of Kirby McInerney LLP by email at investigations@kmllp.com, or fill out the contact form below, to discuss your rights or interests with respect to these matters at no cost.

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Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.

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