In an interesting turn of events, Greystar, the largest multifamily operator in the U.S., has reached a settlement with the Department of Justice (DOJ) concerning its involvement in the RealPage rent collusion lawsuit. For more context, the DOJ highlighted its position on algorithm-based rent-setting in this short statement. The settlement, in part, prevents Greystar from using any algorithm-based rent setting software (a.k.a. RealPage's software).
While Greystar is no longer liable in this litigation with the federal government, this outcome raises concerns about RealPage's fundamental argument that its software does not violate antitrust laws. The future of this case remains uncertain, but for now, this appears to be an arguably good development for renters and a not-so-good development for RealPage and the operators and owners using this software. For more background, refer to the articles previously written by Taft/Morris Manning below.
Unveiling the Pitfalls: The Real Risks of Using RealPage
Antitrust Lawsuit Involving Multifamily Owners and Managers Continues
Taft/Morris Manning has provided guidance to owners and operators regarding various risks associated with operating multifamily assets. For advice, please contact one of our attorneys.
