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US Supreme Court won’t hear Zillow’s bid to escape investor class action - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers US Supreme Court won’t hear Zillow’s bid to escape investor class action D&O , Risk Management Oct 5, 2026 (Reuters) – The U.S. Supreme Court declined on Monday to hear a bid by real estate platform Zillow Group to escape a class action that accused it of misleading investors about its failed home-flipping venture. The court turned away Seattle-based Zillow’s appeal of a lower court’s decision that allowed the 2021 lawsuit to move forward in federal court in Washington state. At issue in the case is what defenses publicly traded companies can raise in lawsuits alleging they made false statements to the investing public. In such class actions, which are common in U.S. courts, plaintiffs lawyers frequently allege that companies made misrepresentations designed not to actively drive up their stock price, but simply to keep it from falling. The Zillow dispute is an example of one of these cases, known as “price-maintenance” cases. Zillow’s stock plunged in November 2021 because the company announced it was permanently shutting down Zillow Offers, its home-flipping division, after management admitted it could not accurately forecast future home prices. The company disclosed that it wrote down $300 million in losses during the previous quarter and announced a layoff of 25% of its workforce. Investors sued in federal court, saying statements made by Zillow’s then-CEO and other company leaders in the preceding months painted an overly positive picture of the business unit. Zillow’s lawyers denied that the company had engaged in securities fraud. “Zillow made a business decision to enter a new line of business, disclosing all of the risk in doing so, that in the end simply did not work out as the company had hoped,” Zillow’s lawyers said in a court filing. The San Francisco-based 9th US Circuit Court of Appeals last year upheld a judge’s decision that allowed the case to move forward as a class action. The disclosures Zillow made in November 2021 “revealed new information about how Zillow’s home-pricing struggles threatened the business and suggested that its earlier statements may have obscured how Zillow’s pricing model misfired,” the 9th Circuit said. In a filing asking the Supreme Court to hear its appeal, Zillow said the justices should clear up a split in federal appellate courts over how closely related a company’s back-end corrective disclosures, which trigger a stock drop, must be to earlier alleged misstatements to justify certifying a class action. Pro-business lobbying groups, including the US Chamber of Commerce, have criticized the 9th Circuit decision, saying in a filing that this ruling deviated from Supreme Court precedent and “would expose American businesses to costly securities class-action lawsuits.” Related News Louisiana court reverses comp denial over driver’s employment status October 5, 2026 Comp claim bars negligence suit over resident’s assault October 5, 2026 Flood of cars appears in inundated lot October 5, 2026 Hamilton Re executive among six lost after air ambulance disappears October 5, 2026 Broker consolidation shifts from dealmaking to integration October 5, 2026 Intact hires former Allianz Commercial risk consulting exec October 5, 2026 Cyber insurer adds AI-based risk assessment service October 5, 2026 QBE must show harm to deny discrimination claim: Appeals court October 5, 2026 Beazley and Zurich Global Specialty Names New CEO October 5, 2026 Facebook-f X-twitter Linkedin-in Business Insurance is a singular, authoritative news and information source for executives focused upon risk management, risk transfer and risk financing. 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