Zillow and Real Estate Stocks Plunge After Collusion Verdict

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Zillow Group Inc. and other real estate stocks experienced a significant drop in value after a Missouri jury found the National Association of Realtors and other industry players guilty of colluding to maintain high brokerage commissions.

-- Zillow Group Inc. and other real estate stocks plunged after a Missouri jury found the National Association of Realtors and other industry players guilty of colluding to maintain high brokerage commissions.Shares of Zillow were down 6% to $35.87 at 2:26 p.m. New York time. They earlier fell as much as 11%, the largest intraday decline since May 2022, after industry publications reported on the ruling. Brokerage shares also sank, with Compass Inc. falling 6.6%. Redfin Corp. dropped 7.3%.

The jury awarded $1.785 billion in damages in the case, which was the smaller of two lawsuits concerning brokerage commission practices. In a third matter, the Justice Department is focused on a commission-sharing system that typically puts home sellers on the hook for a 5% to 6% cut of the sale, split between their agent and the buyer’s agent.

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