Nearly five years after shuttering its home-flipping business, Zillow has agreed to pay investors more than $200 million to settle claims that the company artificially inflated its stock price.

The Seattle-based real estate company disclosed in an SEC filing Wednesday that it agreed to pay $212.5 million to settle a class-action lawsuit, with $48 million of that to be paid through insurance.

The case centered around Zillow’s short-lived attempt at iBuying, an algorithm-driven form of house-flipping the company launched in 2018 and branded Zillow Offers. About three years later, the company announced that it would shutter Zillow Offers and lay off a quarter of its staff after failing to accurately project the costs of buying and selling homes in a hot housing market. Zillow still owned thousands of homes it would need to resell, some at a loss.

Zillow Offers did not buy homes in Seattle, but operated in other cities.

Shareholders alleged company executives made “misstatements and/or omissions about the success of Zillow Offers that artificially drove up the company’s share price only for that price to fall later when the company shut down Zillow Offers.

"We are incredibly pleased to obtain this result for investors, attorney Steve Berman, who represented the investors, said in a statement Wednesday.

Zillow did not admit to the allegations.

“The Settlement Agreement contains no admission of liability or wrongdoing by any of the defendants,” the company wrote in the SEC filing this week. Zillow said in a statement the company was “pleased that the parties have reached a resolution on the matter.”

Investors who could receive payments include those who purchased Zillow stock between Aug. 5 and Nov. 2, 2021. Qualifying investors will receive notice if a federal court approves the settlement.

Since the case was filed in 2021, Zillow has unsuccessfully attempted to have it dismissed and block its class-action status. Earlier this month, the U.S. Supreme Court declined to hear Zillow’s appeal of the case’s class-action status.

©2026 The Seattle Times. Visit seattletimes.com. Distributed by Tribune Content Agency, LLC.