Yes Zillow is / was under invesigation by the SEC. It was announced on October 2nd that Zillow was subject to a SEC investigation regarding its revenue recognition policy and how it accounted for one time adjustments. The trail of letters between the SEC and Zillow can be read on the SEC website. Well worth reading, but unfortunately Yahoo doesn't allow weblinks to other websites. There is a thread on this message board started by 'acesmith999' on October 2nd about the SEC investigation of Zillow that you may want to read as well.
I have it from a reliable source that Zillow also causes hemroids and oral herpes. It is also though they were involved in the Lindberg baby kidnap/murder. All the details are on that other message board too - well worth reading but unfortunately the shorts here have the creditability of rabid ferrets!
Zillow sure causes headaches and unnecessary stress for 10 million homeowners whose homes are inflicted with erroneous and unwanted zestimates and zillows absolute refusal to correct or delete their incorrect valuation. Shame the SEC doesn't investigate that as well.