Originally
filed
as
two
separate
lawsuits
in
late
September
2025
before
being

consolidated
in
late
November,

the
lawsuit
claims
that
the

multifamily
rental
syndication
deal
executed
by
Zillow
and
Redfin
was
tantamount
to
Zillow
simply
paying
Redfin
$100
million
in
exchange
for
it
no
longer
competing
in
the
multifamily
rental
listing
space.
The
defendants
filed
a

motion
to
dismiss
the
lawsuit
in
mid-January.
A
hearing
on
this
motion
is
scheduled
for
Feb.
25. 

In
their
most
recent
filing,
Redfin
and
Zillow
argue
that
the
regulator
plaintiffs
are
ignoring
half
of
the
market
Zillow
and
Redfin
serve,
as
both
platforms
serve
both
consumers
and
property
managers.
The
defendants
argue
that
the
regulators’
complaint
only
focuses
on
how
the
partnership
could
harm
property
managers
and
landlords
and
it
ignores
how
it
benefits
renters. 

Additionally,
Zillow
and
Redfin
pushback
against
the
regulators’
claim
that
there
is
a
nationwide
market
for
paid
internet
listing
service
advertising,
arguing
instead
that
rental
advertising
is
local
and
that
property
managers
advertise
in
specific
cities.
The
defendants
also
contend
that
the
plaintiffs
have
ignored
other
advertising
options
property
managers
and
landlords
can
take
advantage
of,
like
social
media
or
even
other
online
platforms. 

The
companies
also
argue
that
the
regulators
have
failed
to
show
that
they
have
enough
power
to
raise
prices
or
control
the
market.
In
the
filing,
Redfin
and
Zillow
note
that
in
their
complaint,
the
regulators
didn’t
provide
specific
market
share
numbers,
nor
did
they
show
that
the
two
companies
together
dominate
the
market.
According
to
Redfin
and
Zillow,
all
of
this
combined
means
that
the
regulators
did
not
show
any
evidence
of
actual
harm,
but
instead
only
predict
possible
future
harm,
which
they
argue
is
not
enough
for
the
lawsuit
to
proceed. 

While
the
parties
wait
for
the
court’s
ruling
on
this
motion
to
dismiss,
they
have
been
engaged
in
discovery.
In
a
separate
status
update
filed
on
Monday,
the
parties
disclosed
that
they
have
been
working
together
to
meet
the
discovery
deadlines
set
by
the
court.
So
far
in
the
discovery
process,
Zillow
has
produced
roughly
240,000
custodial
and
1,100
noncustodial
documents,
while
Redfin
has 
produced
approximately
91,000
custodial
and
500
noncustodial
documents.
They
also
told
the
court
that
they
are
working
together
to
coordinate
and
schedule
defendant
depositions. 

This
update
comes
after
the

court
settled
a
discovery
dispute
between
the
parties
earlier
this
month,
ordering
that
they
must
produce
a
variety
of
internal
and
external
communications
and
documents,
as
well
as
declarations
from
several
executives
including
Rich
Barton,
Lloyd
Frink
and
Zillow
CEO
Jeremy
Waksman.