RegulationsTechnology

Zestimate legal challenge seeks class-action status

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A family of homebuilders is suing Zillow Group over the Zestimate in Illinois. The suit, which is seeking class-action status, alleges that Zestimates are illegal appraisals and violate consumer protection laws. Barbara Andersen, the attorney representing the family, had sued Zillow Group over her own home’s Zestimate earlier in May. But she dropped that case and filed the new one after receiving “overwhelming demand” to challenge the legality of Zestimates on behalf of all homeowners whose properties are listed on Zillow, she told Inman. Zillow Group says that the charges are "without merit" and plans to file a “timely response," said Emily Heffter, a spokeswoman for Zillow Group. Andersen expects the case “will go to appellate court no matter who wins." Andersen said she teamed up with plaintiffs Vipul Patel, Bhasker Patel, Jyotsna Patel and CastleBldrs.com to sue Zillow because they were comfortable with the media attention that was likely to result. [...