Viriginia, Arizona, Connecticut, New York, and Washington state brough suit against Zillow and Redfin in the District Court for the Eastern District of Virginia in October 2025.  The plaintiff states allege that the defendants executed an illegal agreement under which Redfin exited the internet listing services (“ILS”) market for buildings with more than 25 units and transferred its customers to Zillow.  The complaint alleges that the agreement eliminates competition in the highly-concentrated multifamily ILS market in violation of Section 1 of the Sherman Act, or, if viewed as an acquisition, under Section 7 of the Clayton Act.

In December 2025, the plaintiff states’ case was consolidated with a separate lawsuit against the defendants filed by the Federal Trade Commission.