Zillow RESPA case not over yet as amended filing narrows scope 

Plaintiffs are attempting to revive the lawsuit initially filed against Zillow last September as they continue to allege that the portal violated the Real Estate Settlement Procedures Act (RESPA) by steering customers to Zillow Home Loans, actions that they say resulted in inflated commissions.

Attorneys representing the plaintiffs in what has come to be known as the Taylor case filed their latest amended complaint with the U.S. District Court for the Western District of Washington on Aug. 17.

Judge James Robart dismissed the case last month but gave the plaintiffs until today to file an amended complaint, stating that the court could not "conclude the Plaintiffs are entirely incapable of curing" the "defects" contained within earlier filings.

Limiting the claims: The amended complaint is "substantially narrowed," it notes, with a focus on alleged RESPA and Washington state Consumer Protection Act violations. It also explores more of the specific details that Robart said were lacking in the previous complaint, including dollar amounts for settlement services like loan origination fees.

The filing draws on nine confidential current or former Zillow Preferred agents and two confidential loan officers to describe how the quota system allegedly worked. It does not include the RICO violation allegations included in the earlier dismissed complaint.

"At its core, this case is about Zillow requiring 'Zillow Preferred' real estate agents to steer homebuyers to use Zillow Home Loans … in exchange for homebuyer leads," the amended complaint alleges.

Doubling down on steering allegations: In last month's dismissal, Robart said the plaintiffs had failed to show specifically how Zillow's practices undermined the homebuying process or restricted information about lender choices.

In the amended complaint, the plaintiffs' attorneys indicate that more than one of their clients were pressured into using Zillow Home Loans (ZHL), with one plaintiff alleging that he was told he would be able to close faster by using ZHL and "would lose the property if he tried to use someone else because that would delay the closing."

The new filing also references a December 2025 study suggesting Zillow borrowers were overpaying for their loans.

Named plaintiff lineup changes: Five named plaintiffs are listed in the amended complaint: Araba Armstrong, David Liao, Furgus Wilson, Brandon Daugherty and Rebecca Robbins. Only two — Armstrong and Liao — were named in earlier filings.

The original lawsuit, which focused on Zillow's Flex referral program, was filed in September 2025 by Alucard Taylor, and two RICO claims were added a couple of months later. In December 2025, a judge consolidated the case with another that Armstrong had filed against the company a month earlier.

Zillow filed a motion to dismiss the consolidated case in February.

What Zillow had to say: Monday's filing drew a quick rebuke from the portal. "This new complaint has just as little merit as the plaintiffs' five other attempts, which have all been unsuccessful," the company said in an emailed statement.

"A federal court dismissed every one of their claims last month, and our position hasn't changed since then: the tools Zillow provides for buyers are free, transparent and optional. Any claims to the contrary are baseless."

Zillow added that it "will continue to defend this case with the same confidence we've had throughout, regardless of how many times the plaintiffs refile."