Greystar, a major apartment manager in Southern California, has settled a lawsuit claiming it and other landlords conspired to inflate rents using RealPage’s pricing software. The lawsuit, initiated by the U.S. Department of Justice, accused Greystar of sharing proprietary data to adjust prices illegally.
As part of the settlement, Greystar will stop using software that employs competitively sensitive information for setting rents and will pay $7 million in fines across nine states, including California. Greystar has also agreed to assist in ongoing investigations against RealPage.
California Attorney General Rob Bonta criticized the collaboration between landlords to manipulate prices, asserting it undermines market competition. RealPage, which has its own settlement with the DOJ, will face restrictions on its operations, specifically barring it from using confidential competitor information to set rental prices.
This settlement could lead to increased competition and potentially lower rental costs for tenants, as it removes barriers preventing landlords from competing on price. Other apartment companies involved in the lawsuit include Camden and Cushman & Wakefield/Pinnacle.
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