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Zillow lawsuit over RESPA referral practices dismissed for lack of standing
A Seattle federal judge found the plaintiffs did not adequately allege they paid the referral fees they said Zillow was charging, and dismissed RICO claims for insufficient detail.
HousingWire reports that a Seattle-based federal court, presided over by Judge James Robart, dismissed RESPA claims in the consolidated Taylor and Armstrong case against Zillow.
The court ruled the plaintiffs lacked standing because their complaint did not show enough factual basis for the RESPA allegations, and it also found the racketeering claims under the RICO Act lacked the required level of detail.
The lawsuit, originally filed in mid-September 2025, alleged that Zillow’s Flex and Premier Agent programs steered homebuyers to affiliated real estate agents and Zillow Home Loans, and it accused the portal of inflating home purchase prices.
The complaint also alleged Zillow violated RICO by purportedly encouraging buyers to apply for more costly loans that were not in their best interests, and it later consolidated with the Armstrong suit, which raised similar allegations about agents being pressured to route mortgage pre-approvals to Zillow Home Loans.