America's landlords settle claim they used rent-setting algorithms to gouge consumers nationwide for $141 million | Fortune

"Real estate giant Greystar and 25 other property management companies have agreed to collectively pay more than $141 million to settle a class action lawsuit accusing landlords of driving up housing costs by using rent-setting algorithms offered by the software company RealPage. Greystar, the nation's largest landlord, would pay $50 million under the proposed settlement agreement, which was filed Wednesday in a Tennessee federal court."

"All companies involved in the settlement deny wrongdoing and have agreed to help plaintiffs in the ongoing case against RealPage and more than a dozen other property management firms that have not reached settlements. RealPage and others are also fighting an antitrust lawsuit filed last year by the Department of Justice and several state attorneys general. Greystar reached a settlement in that case in August."

"The companies have also agreed to no longer share nonpublic information with RealPage for its rent algorithm - a key stipulation, since plaintiffs say RealPage used that information to enable landlords to align their prices and push up rents. "This represents a fundamental shift in the multifamily housing industry and will help reverse the type of anticompetitive coordination alleged in the Complaint," attorneys wrote in the settlement filing."

Greystar and 25 other property management companies agreed to pay more than $141 million to settle a class action alleging landlords used RealPage rent-setting algorithms to raise housing costs. Greystar would pay $50 million under the proposed settlement filed in Tennessee federal court. The companies agreed to stop sharing nonpublic information with RealPage for its rent algorithm. All settling companies deny wrongdoing and will assist plaintiffs in the ongoing case against RealPage and other firms. Settlement funds will be distributed among millions of tenants in the settlement class. RealPage denies wrongdoing and says its software is used on fewer than 10% of rental units.

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