Zillow stock fell more than 16 percent after one disclosure about legal costs. That drop sits at the center of a securities class action now filed against the company.
The law firm Berger Montague announced the suit on August 3, 2026. It covers investors who bought or acquired Zillow common stock between February 11, 2025 and May 7, 2026, the span the complaint calls the Class Period. Zillow trades on the Nasdaq under two tickers, ZG for Class A shares and Z for Class C.
In plain terms, the investors say the company’s picture of its business was misleading, and that the truth only came out in pieces. Each piece, they allege, cost shareholders money.
The disclosures at issue
The first, which the announcement does not date, knocked more than 4 percent off Class A and Class C shares.
The second came on February 10, 2026. Zillow said then that legal expenses had run higher than expected and would create a headwind of about 200 basis points on its first-quarter EBITDA margin. Both share classes fell by more than 16 percent.
The third followed on May 7, 2026. That day it was reported that a federal judge had denied motions by Zillow and Redfin to dismiss the Federal Trade Commission’s lawsuit, which lets the agency’s antitrust claims go forward. Zillow’s stock slid again.
The company
Zillow is based in Seattle and runs a digital real estate marketplace where people buy, sell, rent and finance homes. Its platform pulls together residential listings and links consumers with real estate professionals, landlords and mortgage providers.
Berger Montague, a plaintiffs’ firm headquartered in Philadelphia, says it has recovered more than $50 billion for clients and classes over more than 55 years. The allegations against Zillow are claims in a lawsuit, not findings by a court.
