Investor alleged Zillow lied about co-marketing program

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A Zillow Group shareholder filed a lawsuit alleging the company and its two top executives defrauded investors by misrepresenting its co-marketing program’s compliance with an anti-kickback law, thereby artificially inflating the real estate giant’s stock price.

The lawsuit sought class-action status on behalf of other Zillow Group investors and came as Zillow Group headed into settlement talks with the Consumer Financial Protection Bureau, which had recently concluded a two-year federal investigation of the company’s co-marketing program for compliance with the Real Estate Settlement Procedures Act (RESPA).

Another Zillow Group shareholder filed a federal lawsuit against the company in September, and it appeared the real estate giant could face a slew of similar suits.