{"success":true,"data":{"pressRelease":{"id":"34230","rtpr_id":"nBw2R5BxYa","ticker":"ZG","exchange":"NASDAQ","all_tickers":["ZG"],"title":"ZILLOW GROUP, INC. INVESTOR ALERT: Kirby McInerney LLP Announces Investigation Into Potential Securities Fraud","author":"Business Wire","published_at":"2026-05-13T21:19:00.097Z","article_body":"ZILLOW GROUP, INC. INVESTOR ALERT: Kirby McInerney LLP Announces Investigation\nInto Potential Securities Fraud\n\nThe law firm of Kirby McInerney LLP\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.kmllp.com%2F&esheet=54534871&newsitemid=20260512058468&lan=en-US&anchor=Kirby+McInerney+LLP&index=1&md5=4f810d3f81a6dca34b7289a46366e6a5)\nis investigating potential claims against Zillow Group, Inc. (“Zillow” or\nthe “Company”) (NASDAQ:Z). The investigation concerns whether the Company\nand/or members of its senior management may have violated federal securities\nlaws or engaged in other unlawful business practices.\n\n[LEARN MORE ABOUT THE INVESTIGATION\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.kmllp.com%2Fcases-investigations%2Fzillow-group-inc&esheet=54534871&newsitemid=20260512058468&lan=en-US&anchor=LEARN+MORE+ABOUT+THE+INVESTIGATION&index=2&md5=5d73f737f933798e879a84b5f2b1a4c5)\n]\n\nWhat Happened?\n\nOn March 5, 2024, Spruce Point Capital released a report alleging potential\npremature revenue recognition issues in Zillow’s Flex model, in which the\nCompany recognizes revenue when a lead is sent to an agent, despite the agent\nthen having up to two years to close a deal. On this news, the price of Zillow\nshares declined by $2.85 per share, or approximately 5%, from $57.34 per share\non March 4, 2024 to close at $54.49 on May 5, 2024.\n\nThen, on September 30, 2025, the Federal Trade Commission announced that it\nhad sued “Zillow and Redfin over an unlawful agreement that eliminates\nRedfin as a competitor in the market for placing advertising of rental housing\non internet listing services (ILSs)-the websites that millions of Americans\nuse to find their next rental home.” On this news, the price of Zillow\nshares declined by $3.57 per share, or approximately 5%, from $77.05 per share\non September 30, 2025 to close at $73.48 on October 1, 2025.\n\nFinally, on February 10, 2026, Zillow announced fourth quarter 2025 earnings.\nIn the earnings call, CFO Jeremy Hofmann stated that legal expenses “was\nhigher than we anticipated coming into the quarter and was ultimately 180\nbasis points of margin drag for Q4. Obviously, we laid out what we think for\n2026 from a legal cost perspective as well, and it will be a drag, but it's\nnot stopping us from expanding margins, which we expect to do throughout\n2026.” On this news, the price of Zillow shares declined by $9.05 per share,\nor approximately 17%, from $54.71 on February 10, 2026 to close at $45.66 on\nFebruary 11, 2026.\n\nWhat Should I Do?\n\nAt this stage, no lawsuit has been filed. The investigation is ongoing to\ndetermine whether claims may be brought under federal securities laws.\n\nIf you purchased or otherwise acquired Zillow securities, have information, or\nwould like to learn more about this investigation, please contact Lauren\nMolinaro\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.kmllp.com%2Fprofessionals%2FLauren-Molinaro&esheet=54534871&newsitemid=20260512058468&lan=en-US&anchor=Lauren+Molinaro&index=3&md5=94718366bbbc60e76f2bc33bef2302fc)\nof Kirby McInerney LLP\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.kmllp.com%2F&esheet=54534871&newsitemid=20260512058468&lan=en-US&anchor=Kirby+McInerney+LLP&index=4&md5=6e037d85ba74da5d78211047bee1684f)\nby email at investigations@kmllp.com (mailto:investigations@kmllp.com) , or\nfill out the contact form below, to discuss your rights or interests with\nrespect to these matters at no cost.\n\n[LEARN MORE ABOUT SECURITIES CLASS ACTIONS\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fsecuritiesleadplaintiff.com%2F&esheet=54534871&newsitemid=20260512058468&lan=en-US&anchor=LEARN+MORE+ABOUT+SECURITIES+CLASS+ACTIONS&index=5&md5=fcb4675ae2e10e45e8f0f2d31d4e03ca)\n]\n\nKirby McInerney LLP\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.kmllp.com%2F&esheet=54534871&newsitemid=20260512058468&lan=en-US&anchor=Kirby+McInerney+LLP&index=6&md5=d44ba4a70afcc6d66e8bcde7d8c02471)\nis a New York-based plaintiffs’ law firm concentrating in securities,\nantitrust, whistleblower, and consumer litigation. The firm’s efforts on\nbehalf of shareholders in securities litigation have resulted in recoveries\ntotaling billions of dollars. Additional information about the firm can be\nfound at Kirby McInerney LLP’s website\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.kmllp.com%2F&esheet=54534871&newsitemid=20260512058468&lan=en-US&anchor=website&index=7&md5=ae293b3d7adf8343ab4989424c9e83a9)\n.\n\nThis press release may be considered Attorney Advertising in some\njurisdictions under the applicable law and ethical rules.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260512058468/en/\n(https://www.businesswire.com/news/home/20260512058468/en/)\n\nKirby McInerney LLP\n\nLauren Molinaro, Esq.\n\n212-699-1171\n\nhttps://www.kmllp.com \n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.kmllp.com%2F&esheet=54534871&newsitemid=20260512058468&lan=en-US&anchor=https%3A%2F%2Fwww.kmllp.com&index=8&md5=8f18d88ff2d34a15037f1d80d014c7cc)\n\nhttps://securitiesleadplaintiff.com/ \n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fsecuritiesleadplaintiff.com%2F&esheet=54534871&newsitemid=20260512058468&lan=en-US&anchor=https%3A%2F%2Fsecuritiesleadplaintiff.com%2F&index=9&md5=47454f06c2f5d918cd75fbad2271a448)\n\ninvestigations@kmllp.com (mailto:investigations@kmllp.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw2R5BxYa","title":"ZILLOW GROUP, INC. INVESTOR ALERT: Kirby McInerney LLP Announces Investigation Into Potential Securities Fraud","author":"Business Wire","ticker":"ZG","created":"2026-05-13T21:19:00.097Z","tickers":["ZG"],"exchange":"NASDAQ","article_body":"ZILLOW GROUP, INC. INVESTOR ALERT: Kirby McInerney LLP Announces Investigation\nInto Potential Securities Fraud\n\nThe law firm of Kirby McInerney LLP\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.kmllp.com%2F&esheet=54534871&newsitemid=20260512058468&lan=en-US&anchor=Kirby+McInerney+LLP&index=1&md5=4f810d3f81a6dca34b7289a46366e6a5)\nis investigating potential claims against Zillow Group, Inc. (“Zillow” or\nthe “Company”) (NASDAQ:Z). The investigation concerns whether the Company\nand/or members of its senior management may have violated federal securities\nlaws or engaged in other unlawful business practices.\n\n[LEARN MORE ABOUT THE INVESTIGATION\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.kmllp.com%2Fcases-investigations%2Fzillow-group-inc&esheet=54534871&newsitemid=20260512058468&lan=en-US&anchor=LEARN+MORE+ABOUT+THE+INVESTIGATION&index=2&md5=5d73f737f933798e879a84b5f2b1a4c5)\n]\n\nWhat Happened?\n\nOn March 5, 2024, Spruce Point Capital released a report alleging potential\npremature revenue recognition issues in Zillow’s Flex model, in which the\nCompany recognizes revenue when a lead is sent to an agent, despite the agent\nthen having up to two years to close a deal. On this news, the price of Zillow\nshares declined by $2.85 per share, or approximately 5%, from $57.34 per share\non March 4, 2024 to close at $54.49 on May 5, 2024.\n\nThen, on September 30, 2025, the Federal Trade Commission announced that it\nhad sued “Zillow and Redfin over an unlawful agreement that eliminates\nRedfin as a competitor in the market for placing advertising of rental housing\non internet listing services (ILSs)-the websites that millions of Americans\nuse to find their next rental home.” On this news, the price of Zillow\nshares declined by $3.57 per share, or approximately 5%, from $77.05 per share\non September 30, 2025 to close at $73.48 on October 1, 2025.\n\nFinally, on February 10, 2026, Zillow announced fourth quarter 2025 earnings.\nIn the earnings call, CFO Jeremy Hofmann stated that legal expenses “was\nhigher than we anticipated coming into the quarter and was ultimately 180\nbasis points of margin drag for Q4. Obviously, we laid out what we think for\n2026 from a legal cost perspective as well, and it will be a drag, but it's\nnot stopping us from expanding margins, which we expect to do throughout\n2026.” On this news, the price of Zillow shares declined by $9.05 per share,\nor approximately 17%, from $54.71 on February 10, 2026 to close at $45.66 on\nFebruary 11, 2026.\n\nWhat Should I Do?\n\nAt this stage, no lawsuit has been filed. The investigation is ongoing to\ndetermine whether claims may be brought under federal securities laws.\n\nIf you purchased or otherwise acquired Zillow securities, have information, or\nwould like to learn more about this investigation, please contact Lauren\nMolinaro\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.kmllp.com%2Fprofessionals%2FLauren-Molinaro&esheet=54534871&newsitemid=20260512058468&lan=en-US&anchor=Lauren+Molinaro&index=3&md5=94718366bbbc60e76f2bc33bef2302fc)\nof Kirby McInerney LLP\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.kmllp.com%2F&esheet=54534871&newsitemid=20260512058468&lan=en-US&anchor=Kirby+McInerney+LLP&index=4&md5=6e037d85ba74da5d78211047bee1684f)\nby email at investigations@kmllp.com (mailto:investigations@kmllp.com) , or\nfill out the contact form below, to discuss your rights or interests with\nrespect to these matters at no cost.\n\n[LEARN MORE ABOUT SECURITIES CLASS ACTIONS\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fsecuritiesleadplaintiff.com%2F&esheet=54534871&newsitemid=20260512058468&lan=en-US&anchor=LEARN+MORE+ABOUT+SECURITIES+CLASS+ACTIONS&index=5&md5=fcb4675ae2e10e45e8f0f2d31d4e03ca)\n]\n\nKirby McInerney LLP\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.kmllp.com%2F&esheet=54534871&newsitemid=20260512058468&lan=en-US&anchor=Kirby+McInerney+LLP&index=6&md5=d44ba4a70afcc6d66e8bcde7d8c02471)\nis a New York-based plaintiffs’ law firm concentrating in securities,\nantitrust, whistleblower, and consumer litigation. The firm’s efforts on\nbehalf of shareholders in securities litigation have resulted in recoveries\ntotaling billions of dollars. Additional information about the firm can be\nfound at Kirby McInerney LLP’s website\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.kmllp.com%2F&esheet=54534871&newsitemid=20260512058468&lan=en-US&anchor=website&index=7&md5=ae293b3d7adf8343ab4989424c9e83a9)\n.\n\nThis press release may be considered Attorney Advertising in some\njurisdictions under the applicable law and ethical rules.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260512058468/en/\n(https://www.businesswire.com/news/home/20260512058468/en/)\n\nKirby McInerney LLP\n\nLauren Molinaro, Esq.\n\n212-699-1171\n\nhttps://www.kmllp.com \n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.kmllp.com%2F&esheet=54534871&newsitemid=20260512058468&lan=en-US&anchor=https%3A%2F%2Fwww.kmllp.com&index=8&md5=8f18d88ff2d34a15037f1d80d014c7cc)\n\nhttps://securitiesleadplaintiff.com/ \n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fsecuritiesleadplaintiff.com%2F&esheet=54534871&newsitemid=20260512058468&lan=en-US&anchor=https%3A%2F%2Fsecuritiesleadplaintiff.com%2F&index=9&md5=47454f06c2f5d918cd75fbad2271a448)\n\ninvestigations@kmllp.com (mailto:investigations@kmllp.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-05-13T21:19:00.16011188Z","server_sent_at_ms":1778707140160},"received_at":"2026-05-13T21:19:00.218Z","source_url":"https://www.businesswire.com/news/home/20260512058468/en/"},"analysis":{"id":"24207","press_release_id":"34230","analysis_json":{"industry":{"label":"Internet & Direct Marketing Retail","sector":"Communication Services"},"redFlags":[],"eventType":"legal_litigation","narrative":"Kirby McInerney LLP is investigating potential securities fraud claims against Zillow Group, Inc.\n\nThe investigation focuses on premature revenue recognition in Zillow's Flex model and an FTC lawsuit over an unlawful agreement with Redfin.\n\nLegal expenses were higher than anticipated in Q4 2025, causing a 17% decline in Zillow's share price on February 10, 2026.\n\nAt this stage, no lawsuit has been filed. 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