Judge orders stay in RESPA case involving Zillow, Real and eXp 

Zillow, which has been battling multiple lawsuits, scored some small victories this past week. 

The search portal called the judge's June 23 ruling in a RESPA case "another setback for the plaintiffs," and praised the court's rejection of an amicus brief in its lawsuit against MRED and Compass.

Compass, meanwhile, has reached a settlement in a telemarketing case filed by an Oregon homeowner.

Zillow notches wins in Taylor, MRED cases

A class-action lawsuit originally filed in September 2025 is on hold after a judge granted a motion from two defendants in the case. 

On June 23, Judge James L. Robart approved a motion filed in March by The Real Brokerage and The Frano Team — a Real-affiliated team — to compel arbitration between the two parties and the plaintiffs. Robart also stayed litigation in the case until that arbitration is completed. 

What the case is about: A Portland homebuyer sued Zillow last year over its "Flex" agent referral program, claiming the portal "tricks" buyers into contacting a partner agent and uses its monopoly power to maintain "high and inflexible commissions." The case was later consolidated with a related lawsuit, and amended complaints included RESPA and RICO claims alleging that Zillow illegally steers buyers to its mortgage business. 

As the case progressed, three Real-affiliated brokerages/teams, The Real Brokerage and eXp Realty were added as defendants. 

Zillow previously pushed for a stay and a dismissal of the case, with today's ruling marking a win for the defendants.

In a statement published on its website, Zillow said the ruling "is yet another setback for the plaintiffs and just offers further proof that plaintiffs have simply been throwing new theories and parties at the wall without any substance behind them." 

"The court is still considering Zillow's motion to dismiss the suit altogether," the statement added.

Real declined to comment on the ruling.

Court won't consider CoStar brief in Zillow vs. MRED: In a separate lawsuit filed in May by Zillow against Midwest Real Estate Data (MRED) and Compass, an attempt by CoStar Group — which operates rival home search portal Homes.com — to have a say in the case was denied.

Zillow's lawsuit alleges that MRED and Compass formed a conspiratorial partnership to conceal listings from consumers and "punish Zillow for not going along with it." CoStar shared a different perspective in an amicus brief filed on June 10, arguing that Zillow itself is engaged in anticompetitive conduct with its Zillow Preview program, and framing the lawsuit as an attempt by Zillow to "weaponize the judicial system" for its own benefit.

Based on those claims, CoStar urged the court to deny Zillow's motion for a preliminary injunction against MRED. 

In a one-sentence ruling on June 16, the judge in the case rejected the request to file an amicus brief, meaning CoStar's arguments will not be considered by the court.

Following last week's ruling, a Zillow spokesperson said, "CoStar and Compass are trying to muddy the waters by conflating pre-marketing and private marketing, hoping people won't notice. In this case, it didn't work. Zillow Preview listings are available for any shopper to see for free. That's long been our standard for any listing, and what our transparency policy is based on."

Compass settles in telemarketing case

Compass has reached a tentative settlement with an Oregon homeowner, Jessica Murch, who sued the brokerage in June 2025 after allegedly receiving unsolicited calls and text messages from multiple Compass agents. The plaintiff accused the New York-based firm and its Washington state brokerage arm of violating the Telephone Consumer Protection Act (TCPA), which prohibits telemarketing calls to a residential number listed on the National Do Not Call Registry. 

In a June 22 court filing, Murch indicated that the parties had reached a deal and "are currently finalizing the written settlement agreement." No further details were disclosed.