U
.S. District Judge James L. Robart merged the class‑action suits Taylor v. Zillow and Armstrong v. Zillow on December 10, citing that the claims are substantially similar and that combining them would promote fairness and streamline a potentially costly RESPA dispute over Zillow’s mortgage arm.

    The Taylor complaint, first filed in September and amended on November 19, accuses Zillow and affiliated real‑estate teams of forcing agents to direct buyers to Zillow Home Loans (ZHL). Agents who recommended other lenders or failed to hit quotas risked removal from the Zillow Flex program. The amendment adds two RICO allegations, asserting that Zillow and its broker partners operate an “enterprise” that uses deceptive digital funnels, scripted sales tactics and hidden fees to keep commissions high and inflexible. It also claims that when prospective buyers click “Contact Agent” or “Request a Tour,” they are routed to a Zillow Flex agent without disclosure of Zillow’s 40 % referral fee.

    Armstrong, filed on November 7, echoes the RESPA accusations and targets Zillow’s Premier Agent and Flex lead‑generation schemes. The suit alleges that Zillow coerces agents in these programs to steer clients toward ZHL for pre‑approval, rewarding those who send more clients with better or additional leads—characterized by the plaintiffs as kickbacks.

    Zillow maintains that its programs comply with RESPA and that the allegations misrepresent standard industry practices.

    Consolidation means a single, broader case for Zillow to defend, and a unified strategy for plaintiffs. It eliminates duplicate discovery, ensures consistent rulings, and speeds the litigation toward class certification and dismissal motions. After the court’s interim counsel ruling, plaintiffs will file the merged complaint within two weeks; Zillow will respond five weeks later per the new schedule.