Zillow iBuyer Lawsuit Delayed as Supreme Court Appeal Keeps Case on Hold

According to RISMedia the parties informed the court that the existing schedule is no longer workable because the litigation has been paused while higher courts consider issues raised in the case. The request would postpone trial-related deadlines until the appeal process is resolved.

The case stems from claims connected to Zillow Offers, the company’s former iBuying operation, which purchased homes directly from sellers before renovating and reselling them. Zillow shut down the business in late 2021 after reporting substantial financial losses and acknowledging that forecasting home prices at scale had proven more difficult than anticipated.

The latest filing does not address the underlying merits of the dispute. Instead, it focuses on scheduling, with the parties asking the court to vacate current deadlines and set a revised timetable once the appellate process concludes, RISMedia reported.

Appeal Continues to Shape Case Timeline

The requested delay reflects how appellate proceedings can affect complex civil litigation. When significant legal questions are under review, trial courts frequently suspend discovery or postpone trial dates until higher courts determine whether the case should proceed under existing legal standards.

According to RISMedia, the Supreme Court is considering whether to hear the appeal, leaving the district court without a clear timeline for moving the litigation forward. Until that process is complete, attorneys argue that maintaining the current trial schedule would be impractical.

Related: CoStar Opposes Zillow Bid for Access to Chicago Home Listings in Escalating Real Estate Dispute

A decision by the Supreme Court on whether to grant review would determine the next procedural steps but would not resolve the underlying claims unless the Court ultimately agrees to hear the case and issues a ruling.

Zillow’s iBuying Business Continues to Generate Litigation

Although Zillow exited the iBuying business several years ago, litigation connected to the initiative continues.

The company has previously faced shareholder lawsuits alleging executives failed to adequately disclose risks associated with Zillow Offers before the business was wound down. Zillow has denied wrongdoing in those cases while stating it disclosed the operational and market risks facing the program.

The former iBuying operation also remains part of broader legal scrutiny surrounding Zillow. Separate proceedings involving the company—including antitrust litigation, securities claims and other disputes over business practices—have kept Zillow engaged in multiple high-profile court battles. RISMedia recently reported on shareholder allegations tied to federal antitrust enforcement involving Zillow’s agreement with Redfin, while the company continues to contest those claims.

Competition Issues Remain a Broader Industry Focus

Although the iBuyer case itself is distinct from current antitrust proceedings, it unfolds against a backdrop of heightened regulatory attention toward competition in residential real estate and digital property platforms.

Federal regulators, including the U.S. Department of Justice and the Federal Trade Commission, have intensified scrutiny of competitive practices across the real estate industry in recent years, examining issues involving listing access, brokerage practices, online real estate marketplaces and consolidation. Those broader enforcement efforts have resulted in multiple lawsuits affecting major industry participants, including Zillow, even where the legal theories differ from the claims in the iBuyer litigation.

Source: RISMedia