Zillow has agreed to a $212.5 million cash settlement to resolve a shareholder class-action lawsuit over its defunct home-flipping business, Zillow Offers. The agreement awaits court approval. It came just over three weeks after the U.S. Supreme Court declined to hear Zillow’s appeal, allowing the case to proceed.
Filed in 2021, the lawsuit accused Zillow of misleading investors with overly optimistic statements about Zillow Offers’ profitability and success. The company shut down the venture in November 2021. The closure led to a $304 million writedown and a 25% reduction in Zillow’s workforce. The company’s stock price also fell significantly. Zillow did not admit wrongdoing as part of the settlement.