Justice Division targets landlords in pricing scheme

WASHINGTON – The U.S. Justice Division, in coordination with state co-plaintiffs, has expanded its antitrust lawsuit in opposition to RealPage Inc., now together with six of the nation’s largest landlords in allegations of a collective pricing scheme that has probably affected tens of millions of renters. The amended grievance, filed as we speak, targets Greystar Actual Property Companions LLC, LivCor LLC, Camden Property (NYSE:CPT) Belief, Cushman & Wakefield (NYSE:CWK) Inc, Willow Bridge Property Firm LLC, and Cortland Administration LLC, accusing them of collusion to artificially inflate rental costs.

These entities collectively handle over 1.3 million housing models throughout 43 states and the District of Columbia. The lawsuit alleges that the landlords used delicate aggressive knowledge and algorithmic software program offered by RealPage to coordinate and keep excessive rental costs. This follow, in line with the Justice Division, stifles competitors and harms shoppers by holding rents elevated.

The allegations element varied strategies of coordination, together with direct communication between rivals’ senior managers, “name arounds” for sharing delicate info, participation in RealPage-hosted “person teams,” and exchanging particulars on learn how to set parameters inside RealPage’s pricing software program. These practices, if confirmed, symbolize a big breach of antitrust legal guidelines designed to guard free market competitors and stop collusion.

In parallel with the amended grievance, a proposed consent decree with Cortland has been filed. If accepted by the court docket, Cortland might be required to cooperate with ongoing investigations and might be prohibited from utilizing rivals’ knowledge to tell pricing fashions, amongst different restrictions. The decree mandates the appointment of a company monitor to supervise Cortland’s compliance with these phrases.

The consent decree might be topic to a 60-day public remark interval as per the Tunney Act, after which the court docket could finalize the judgment. The case entails a complete of ten state and commonwealth co-plaintiffs, together with Attorneys Normal from California, Colorado, Connecticut, Illinois, Massachusetts, Minnesota, North Carolina, Oregon, Tennessee, and Washington.

This authorized motion underscores the Justice Division’s dedication to imposing antitrust legal guidelines and guaranteeing aggressive practices within the housing market. The knowledge for this text is predicated on a press launch assertion from the Justice Division.

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