NAR discrimination case appealed; FTC, Zillow squabble
The lawsuit filed by a former NAR employee resurfaces after its January dismissal. Plus, a judge mulls whether to toss the FTC’s case against Zillow and Redfin.
Key points:
- Roshani Sheth, the former NAR employee who filed a discrimination lawsuit against the trade association in 2024, is appealing the case’s dismissal.
- In an emailed statement, NAR responded to the notice of appeal by saying it “will continue to defend our position.”
- Meanwhile, a district court judge is mulling a motion to dismiss in the FTC’s antitrust lawsuit against Zillow and Redfin.
This week, a discrimination lawsuit filed against the National Association of Realtors has been appealed following its dismissal last month.
In Virginia, a judge is considering whether to dismiss a case that the Federal Trade Commission (FTC) brought against Zillow and Redfin.
NAR discrimination case bounces back
Roshani Sheth, the former NAR employee who filed a discrimination case against the trade association in June 2024, filed a notice of appeal with the U.S. Court of Appeals for the Seventh Circuit on Feb. 11.
The case, which was dismissed last month by the U.S. District Court for the Northern District of Illinois, involves allegations that Sheth was fired for complaining about "various acts of discrimination based on her sex and national origin during her employment," which Sheth said included "sexual harassment, unequal terms and conditions of employment and failure to promote."
Sheth was featured in The New York Times' 2023 coverage of issues facing NAR and its leadership — specifically an alledged pattern of sexual harassment, discrimination and retribution.
Why the case was dismissed: Judge Georgia Alexakis dismissed three of the case's four counts last month. Alexakis said the court would not exercise supplemental jurisdiction over the fourth count, which involved a state law breach-of-contract claim.
In the Jan. 13 dismissal filing, Alexakis wrote that the alleged retaliation — which Sheth said included a failure to respond to reference requests and a series of harassing text messages — took place years after Sheth left NAR. The judge also noted that Sheth admitted she released any claims during her employment when she signed a settlement agreement.
NAR's response to the appeal: "We believe the District Court made a well-reasoned decision to dismiss the case, and we will continue to defend our position on appeal," the organization said in an emailed statement.
FTC, Zillow swap arguments
A judge in the U.S. District Court for the Eastern District of Virginia is considering a motion to dismiss a case that the FTC filed in September 2025 against Zillow and Redfin over the companies' rentals agreement. Five state attorneys general joined the FTC in filing suit over the deal shortly thereafter, and the cases were later merged.
The FTC, Zillow and Redfin have filed arguments in recent weeks over whether the case should move forward.
The government contends that the rentals partnership — in which Zillow agreed to pay $100 million to be the exclusive provider of multifamily rental listings for Redfin — harms competition under traditional antitrust standards. Paying a competitor to stop competing will lead to higher prices and less innovation for advertisers and worse outcomes for renters, according to the FTC's Feb. 3 filing.
Zillow and Redfin responded by saying the FTC failed to show how the deal would harm renters, adding that the partnership increases the visibility of listings.
"This is particularly valuable for those prospective renters who like the Redfin platform, which previously lagged in property listings," the Zillow/Redfin response filed on Feb. 12 said.