The lawsuit accuses Airbnb and affiliates of evading regulations to profit from unlawful short-term rentals, impacting housing affordability.
The City of Chicago filed a lawsuit against Airbnb (NASDAQ:ABNB), Airbnb Living, LLC, and Slumber Stay LLC on June 24, 2026. The complaint alleges repeated violations of the Shared Housing Ordinance and consumer protection laws, claiming defendants profited from illegal short-term rentals while bypassing safeguards for renters and housing supply.
The lawsuit follows recent analyst actions, including Truist raising its price target on Airbnb to $134 from $129 on June 12. Truist maintained a Hold rating, citing a favorable revenue backdrop for U.S. leisure travel through Q4. Mizuho also reiterated an Outperform rating earlier in June.
Officials stated the legal action aims to ensure the industry operates fairly while addressing housing affordability and safety concerns in Chicago.