{
  "id": 16975710,
  "title": "Zillow to pay $212.5 million to settle class action over failed real estate venture",
  "url": "https://urgent.news/2026/10/28/zillow-to-pay-212-5-million-to-settle-class-action-over-failed-real",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-28T23:07:13.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/stock-market-news/zillow-to-pay-2125-million-to-settle-class-action-over-failed-real-estate-venture-4981184"
  },
  "original_language": "en",
  "account": "Zillow has agreed to pay $212.5 million to settle a class action lawsuit brought against the online real estate marketplace for misleading shareholders about its failed Zillow Offers home-flipping venture. The settlement, which requires approval from a judge, does not constitute an admission of wrongdoing by Zillow. The company announced the deal just over three weeks after the U.S. Supreme Court declined to hear its appeal from a lower court ruling that allowed the case to move forward. The lawsuit was sparked by a 32% drop in Zillow's stock price over two days in November 2021, following news that most homes in the Zillow Offers inventory were valued below the price Zillow paid for them, and Zillow was considering selling 7,000 homes. In response, Zillow announced it would terminate the Zillow Offers program, record a $304 million loss, and reduce its workforce by 25%. Shareholders claimed they were deceived into purchasing Zillow shares at inflated prices due to the company's leaders presenting an overly optimistic outlook on Zillow Offers. Zillow's attorneys refuted the charges of securities fraud. The settlement's insurance coverage comprises roughly $48 million of the total payout, and a portion will be utilized to compensate the shareholders' legal representatives. Steve Berman, a lawyer representing the plaintiffs, asserted that the securities settlement represents the largest of its kind in the federal court district encompassing Seattle, where the case originated.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}