Zillow Group has agreed to pay $212.5 million to settle a securities class action over alleged investor losses tied to the company’s stock between August and November 2021. The proposed settlement still needs court approval and does not resolve related shareholder derivative lawsuits, which remain pending.
- Settlement amount: Zillow has agreed to put $212.5 million in cash into a settlement fund. About $48 million is expected to come from insurance proceeds. The fund will cover administration and notice costs, court-approved lawyers’ fees and expenses, and payments to eligible class members.
- Who is covered: The class generally includes people and entities that acquired Zillow Class A or Class C shares from Aug. 5 through Nov. 2, 2021, and were allegedly harmed, subject to certain exclusions.
- Approval and payment timing: The agreement is subject to court approval. If the court gives preliminary approval, class members will be notified and can object or ask to be excluded. The court will then hold a hearing before deciding whether to grant final approval. Zillow is to fund the settlement within 20 business days after preliminary approval.
- Effect on claims: If the settlement becomes effective, class members who do not validly opt out will release Zillow, the other defendants and certain related parties from claims connected to the lawsuit’s allegations or their acquisition of Zillow stock during the class period.
- No admission: The agreement does not admit liability or wrongdoing by Zillow or the other defendants.
- Termination condition: The defendants may terminate the agreement in certain circumstances, including if requests to leave the class exceed a confidential threshold based on the number of shares involved.
If completed, the settlement would resolve the covered class-action claims, but not the separate shareholder derivative actions, which are still pending.