Dozens of Owners Settle Rent-Fixing Case, But Not RealPage

A slew of landlords settled a class-action lawsuit revolving around an alleged rent-fixing scheme involving RealPage, but the property management firm is looking to keep fighting.

Twenty-seven property owners and managers agreed to a preliminary deal to settle allegations in the class-action case being contested in a Nashville courtroom, Bisnow reported. The proposal, which needs court approval, would result in a payout of a combined $141 million.

Greystar makes up the largest chunk of the proposed settlement, offering up $50 million to resolve the claim against the major landlord. Others looking to settle include BH Management, Brookfield and Pinnacle Property Management Services.

As part of the settlement, none of the landlords or property managers will admit to wrongdoing. They will be barred from sharing “nonpublic data concerning multifamily residential leases” with RealPage or other third-party companies for five years.

The settling parties will also cooperate to an extent with investigators building the class-action lawsuit.

The proposed settlement excludes about 20 landlords and property managers, as well as RealPage. In a statement, the company said it “continues to believe that this litigation is without merit,” but was “encouraged to see this matter move toward closure.”

More than two years ago, tenants from numerous markets accused RealPage and its rent-setting software of anti-competitive behavior by aiding landlords’ efforts to spike rents. The class-action lawsuit against RealPage and the landlords consolidated more than 30 lawsuits from various states into Nashville federal court.

Litigation against RealPage surfaced after a 2022 ProPublica article that detailed how its YieldStar software could inflate rents and suppress competition across the country based on its algorithm.

The Justice Department has a case of its own going, alleging an industry-wide scheme to coordinate apartment rents through algorithmic pricing. Greystar reached a deal in August to settle its claim in the antitrust case.

— Holden Walter-Warner