7/103 sources · 3 publishersUpdated Oct 29, 14:19 UTC
Zillow agrees to $212.5 million settlement of class action over failed Zillow Offers venture
+1 new source since this summary was written
Zillow announced it will pay $212.5 million in cash to resolve a securities class action alleging it misled investors about its Zillow Offers home‑flipping business. The company did not admit any wrongdoing and the settlement still requires court approval. Insurance is expected to cover roughly $48 million of the payout.
Why it matters
The cash outflow reduces Zillow’s liquidity, though insurance coverage lessens the impact. No admission of liability means the settlement is unlikely to trigger further legal claims.
Key facts
- 1Zillow will pay $212.5 million in cash to settle the class action. investing.com
- 2Insurance will cover about $48 million of the payout. investing.com
- 3Zillow did not admit wrongdoing in the settlement. investing.com
- 4The settlement requires a judge’s approval. investing.com
- 5The lawsuit followed a 32% drop in Zillow’s stock price in November 2021. investing.com
- 6The settlement was announced after the U.S. Supreme Court declined to hear Zillow’s appeal. investing.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.