Redfin Faces Investor Lawsuit Amid Rocket Acquisition

In a significant development in the competitive real estate tech industry, Redfin faces a lawsuit from its investor Bruce Miller regarding its $1.7 billion acquisition by Rocket Companies. Filed in New York state court, Miller accuses Redfin and its board of misleading shareholders by omitting critical financial details about the merger. He also alleges that Goldman Sachs, the financial advisor, failed to disclose conflicts of interest, particularly how it would benefit from the transaction. Miller seeks to prevent the merger before the scheduled June 4 shareholder vote, arguing that concealment of material information impairs shareholder decision-making. Legal firm Halper Sadeh is investigating if the merger terms are fair for Redfin shareholders but does not represent Miller. The lawsuit coincides with Redfin's announcement of its financial results for the first quarter of 2025, revealing a mixed performance. Financial metrics indicate a drop in revenue with significant net loss, though some operational improvements such as increased agent recruitment have been noted. The lawsuit represents potential hurdles for the merger, which aims to position Rocket and Redfin against other large consumer-focused real estate platforms.