Zillow Files Motion for Taylor Case Dismissal

Zillow has asked a federal court to dismiss a consolidated class-action lawsuit challenging the company’s agent referral and mortgage tools.

Alongside the three 'Preferred Agent' partners, also named as co-defendants, Zillow cited insufficient claims from the plaintiffs in a motion filed on February 20.

"Buyers are always free to choose who they work with, and consumers remain free to work with any lender of their choosing," said Zillow.

The lawsuit, filed by Alucard Taylor in September 2025, alleged that homebuyers paid inflated costs, hidden fees and anticompetitive practices. It remains one of seven active lawsuits against Zillow.

Zillow argued that the plaintiff's lawsuit, already amended four times, has yet to display a single claim of illegality on Zillow's part.

A Zillow spokesperson said:

"The claims in this lawsuit are false and fundamentally mischaracterize how our business operates. Zillow is built around empowering consumers with information and choice, and our programs reflect that commitment. Through trusted local agents, clear accountability and tools, we work with partners to help buyers understand what they can afford and deliver strong outcomes for consumers while ensuring they remain in control at every step. We stand by our business model and we will vigorously defend against these meritless allegations."

A notice posted on Zillow's website suggests that Zillow Home Loans (ZHL) remains an opt-in, not opt-out offer for consumers buying properties through its platform.

At the center of the lawsuit are two long‑standing features of Zillow’s platform, both of which exist to bring transparency and simplicity to what has historically been a complex and opaque transaction process.

The motion emphasizes what Zillow has always made clear: both tools are free and completely optional for consumers, who remain in control of which agent they work with to buy or sell a home and which lender they use for financing, including non‑Zillow lenders. In fact, as the motion points out, one of the named plaintiffs who alleges he received a Zillow Home Loans pre-approval, also alleges he chose to finance his home with a different lender. Every person who receives a Zillow Home Loans pre-approval letter can make the same choice.

The bottom line: Zillow’s model is designed to protect consumers and help them through the transaction. Zillow plans to vigorously defend against lawsuits that mischaracterize its business and long‑standing industry practices and says it is grateful for the opportunity to have its day in court and defend itself against plaintiffs’ unfounded claims.