The Department of Justice has expanded its lawsuit against the veridical estate software companionship RealPage to include six of the nation ’s turgid landlords .
The department sued RealPage in August , aver that the company ’s algorithm drew on nonpublic information from competing landlord to advocate rent increases that drove lodging cost up across the state . Now , Union and state of matter prosecutors areaccusingsix real estate companies of being active player in the scheme .
“ While American across the area scramble to afford housing , the landlords named in today ’s suit shared sensitive information about rental terms and used algorithmic program to coordinate to keep the price of rip high , ” DOJ Acting Assistant Attorney General Doha Mekki pronounce in a financial statement . “ Today ’s natural action against RealPage and six major landlord search to end their practice session of place net over people and make living accommodations more affordable for millions of people across the country . ”
The Department of Justice has sued RealPage and six major landlords accusing them of algorithmic price fixing in the rental market.© Tada Images/Getty Images
The companies add together to the suit are Greystar Real Estate Partners LLC Blackstone ’s LivCor LLC ; Camden Property Trust ; Willow Bridge Property Company ; Cortland Management LLC ; and Cushman & Wakefield Inc. and Pinnacle Property Management Services LLC , which are together with owned . Collectively , the company operate more than 1.3 million units in 43 commonwealth , the DOJ said .
Cortland Management , which oversees 80,000 rental units , has already consort to a consent rescript that would bar it from using competitors ’ sensitive data to power any pricing models and from using third - company pricing algorithms without supervision from a court - appoint monitor .
Theamended complaintagainst RealPage and the landlords alleges that the property owner forthwith partake in information about their pricing architectural plan and configurations within RealPage ’s YieldStar software with each other . For example , in September 2020 , Camden ’s director of taxation management allegedly spoke with the music director of Greystar ’s revenue management squad to discuss how they design to approach pricing in the coming quarter .
“ Geystar ’s conductor further disclosed its practice on take over YieldStar rates and use of concession , ” allot to the suit . “ As the conversation continued , the two competitors apportion additional highly - sensitive information on occupancy — include in specific markets — demand , and the strategic use of conceding . ”
The DOJ also alleges that the landlords participate in “ user groups ” host by RealPage during which they discourse how to modify the algorithms ’ pricing methodology as well as their own rent strategies . The charge includes a litany of anecdote from these user group session in which landlords allegedly share nonpublic information with their competitors and RealPage employees allegedly told landlords to “ push up Modern and reclamation pricing ” and “ swear the skill ” of RealPage ’s algorithms .
The DOJ has been join in the suit by the lawyer general from 10 state .
RealPage
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