Zillow faces shareholder lawsuit over Redfin deal

While Zillow may no longer be facing antitrust allegations from the Federal Trade Commission (FTC) about its $100 million multifamily rental syndication deal with Redfin after a settlement was reached in late August, company executives are now facing a shareholder lawsuit regarding the deal. On Wednesday, shareholder plaintiff Shauna Binette Roth IRA filed the suit in King County Superior Court in Washington. The plaintiff is not seeking damages for themselves as the lawsuit is a derivative action, meaning that the plaintiff is trying to recover relief for Zillow itself. The suit names Zillow CEO Jeremy Wacksman, chief financial officer Jeremy Hofmann, co-founders Richard Barton and Lloyd Frink, and eight other current or former directors, as defendants. Details of the complaint Like the FTC’s complaint, the new lawsuit alleges that Zillow effectively paid Redfin $100 million to abandon its multifamily rental advertising business. At the time the deal closed, the two companies described the deal as a partnership. According to the suit, Zillow’s executive leadership and directors should have recognized the antitrust dangers the deal posed before approving it. The complaint also alle...