Zillow Board Wants Derivative Suit Over CFPB Probe Tossed

Law360 (August 23, 2019, 7:18 PM EDT) -- Current and former directors of Zillow Group Inc. say shareholders alleging the company used an illegal co-marketing deal that drew the Consumer Financial Protection Bureau's attention failed to take their concerns to the board before filing suit.

The directors asked a Washington federal judge on Thursday to dismiss the shareholders' derivative suit, filed in October 2017 on the heels of a related securities class action that claimed Zillow maintained an illegal arrangement in which lenders paid for a portion of agents' advertising costs in return for mortgage referrals.

The derivative suit is based "almost entirely" on that securities suit, the directors...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!