On November 19, 2025, Hagens Berman, a prominent plaintiffs’ rights law firm, announced an expanded lawsuit against Zillow Group Inc., alleging that the company engaged in "deceptive" practices in the home buying process. The lawsuit, which now includes testimonies from twelve current and former loan officers and real estate agents, accuses Zillow of conspiring with various real estate brokerage firms to manipulate homebuyers and violate fiduciary duties.

According to the attorneys representing the homebuyers, the claims reveal a troubling narrative about Zillow's internal policies aimed at monetizing every aspect of the home buying experience, even if such practices are deemed illegal.

2. Key Findings from the Lawsuit

The newly revealed details in the lawsuit paint a concerning picture of Zillow's operations. Key allegations include:

Manipulative Steering Practices: The lawsuit outlines claims that Zillow engaged in steering practices, directing loan applicants towards higher-cost loans that do not serve their best interests. This is alleged to be part of a broader anticompetitive scheme involving collaboration with multiple real estate brokerages, including Works Industries LLC, GK Properties, and the Frano Team.

Pressure on Agents: The lawsuit claims that Zillow has pressured its agents, referred to as Zillow Flex agents, to meet quotas related to Zillow Home Loans (ZHL) without putting such directives in writing. Allegedly, Zillow personnel have flown to real estate offices to deliver these instructions verbally.

Misrepresentation of Costs: Loan officers affiliated with Zillow are accused of misrepresenting or omitting critical details regarding closing costs, leading homebuyers to incur excessive fees or ultimately lose their desired properties.

Incentivized Practices: The complaint alleges that Zillow incentivizes agents to "burn and churn" clients, prioritizing quick turnover over the best interests of homebuyers. Additionally, ZHL is accused of cherry-picking only the most qualified borrowers, often neglecting to inform clients of the inexperience of the loan officers handling their applications.

3. Technology as a Surveillance Tool

One particularly alarming claim involves Zillow's use of an internal tool, “Follow-Up Boss,” which allegedly allows the company to monitor communications between Flex agents and their clients. This practice reportedly violates the agents' duty of confidentiality and is utilized to prevent agents from recommending competing loan providers.

4. Legal Implications Under RICO

The lawsuit expands to incorporate claims under the Racketeer Influenced and Corrupt Organizations (RICO) Act, alleging that Zillow's collusion with real estate brokerages constitutes a coordinated effort to mislead homebuyers. This expansion signifies a serious escalation in the legal challenges facing Zillow, with the potential for significant repercussions if the claims are substantiated.

5. Responses from Legal Representatives

Steve Berman, managing partner and co-founder of Hagens Berman, expressed confidence in the strength of the case, stating, "Twelve current and former agents and loan officers have bravely stepped forward to help our clients build a comprehensive case against Zillow." He suggested that the new information could lead to substantial changes in Zillow's policies and practices.

Berman also highlighted the firm's commitment to scrutinizing Zillow's business practices, emphasizing their history of challenging antitrust violations in the real estate sector.

6. Implications for Homebuyers

The implications of this lawsuit are profound for homebuyers, particularly those who have engaged with Zillow's services. The lawsuit invites individuals who have used Zillow agents or scheduled home tours through its platform to understand their rights in light of these allegations.

Zillow's practices, as described in the lawsuit, raise critical questions about the integrity of the home buying process, especially regarding the fiduciary responsibilities of agents. With home purchases representing some of the most significant financial decisions individuals make, the stakes are high for both consumers and the real estate industry as a whole.

7. Conclusion

As this lawsuit unfolds, it will be critical to observe how Zillow responds to these allegations and what potential reforms may arise within the company. The outcome could have lasting implications not only for Zillow but also for the broader real estate market and the practices that govern home buying in the United States. The case underscores the importance of transparency and ethical conduct in an industry where financial stakes are incredibly high.

Original press release