Zillow has filed a petition for a writ of certiorari with the U.S. Supreme Court, asking the high court to review a class-certification ruling in a securities case. The case, led by plaintiff Jeremy Jaeger, alleges that Zillow misled investors by painting an overly rosy picture of its Zillow Offers business, which was eventually shuttered.
The company hopes the Supreme Court will review the decision, with several big names filing amicus briefs in support of the request. Former U.S. Attorney General William Barr and former SEC officials are among those who have submitted briefs urging the court to grant Zillow’s petition.
The Jaeger Case
The Jaeger case alleges that Zillow made misleading statements about its iBuying business, failing to tell investors about the unpredictability of its home price forecasts. The company’s stock price declined precipitously after it announced the shuttering of Zillow Offers, and the plaintiff claims that Zillow’s earlier statements prevented the stock price from declining earlier by concealing the risk of loss.
A district court judge granted the plaintiff’s bid for class certification in August 2024, increasing Zillow’s financial exposure and prompting the company to appeal the decision. The Ninth Circuit Court of Appeals affirmed the class certification ruling in September 2025, and the case is now set for trial on September 13, 2027.
Zillow’s Petition
Zillow’s petition focuses on one core question: Did the plaintiff meet the standard for class certification based on precedents set in other securities fraud cases? The company argues that the plaintiff’s bid for class certification was based on overly broad statements and that the lower courts erred in granting certification.
Zillow claims that its earlier statements about Zillow Offers were not misleading, as they only mentioned the company’s progress on improving its pricing models, not that those models were working with high accuracy. The company also notes that its difficulties in predicting home prices had earlier been specifically quantified and disclosed to the market seven times in press and analyst reports, including through Bloomberg, without any stock price reaction.
Related: Zillow Listings Come With Hidden Costs
Support from Business and Legal Groups
Several business and legal groups have filed amicus briefs in support of Zillow’s petition, arguing that the more liberal standard for front- and back-end statements opens the door to a surge in class certifications in securities fraud cases. They claim that this could result in companies facing crushing liability for securities claims and impose a litigation tax on productive enterprise.
Former U.S. Attorney General William Barr and academics, along with former SEC officials, have submitted amicus briefs urging the court to grant Zillow’s petition.
The plaintiffs have until August 11 to file a response to Zillow’s petition and the amicus briefs. The Supreme Court is set to consider the petition at its September 28 closed conference, and a decision on whether to review the case is expected soon.
If the court opts to review the case, it could affirm the appellate court’s ruling, reverse it, or send the case back for further review. This decision will have significant implications for securities fraud cases and the standards for class certification, potentially affecting companies like Zillow that have seen their profits soar in the past.
Clarity on the issue is needed.
The court’s ruling could help establish a more consistent standard for lower courts to follow.