California Attorney General Rob Bonta, in collaboration with the U.S. Department of Justice and a bipartisan coalition of ten attorneys general, has filed an amended complaint against RealPage and several major property management companies. The lawsuit accuses these entities of engaging in an unlawful pricing alignment scheme that allegedly raised rents artificially across the United States.
The amended complaint names five previously unnamed property management companies: Camden, Cushman & Wakefield/Pinnacle, LivCor, Willow Bridge, and Greystar. The lawsuit seeks claims under California's Unfair Competition Law against all defendants. This follows a previous lawsuit filed last August by Attorney General Bonta against RealPage for its alleged involvement in decreasing competition among landlords and increasing rental prices through illegal sharing of confidential pricing information.
Attorney General Bonta stated, "When it comes reducing the cost of living for Californians, the California Department of Justice is all in. Today’s amended complaint against RealPage and some of the largest property management companies in the country alleges that the companies artificially inflated rent prices and illegally maintained a minimum pricing floor against market trends." He emphasized that both RealPage and landlords benefiting from this scheme must be held accountable.
RealPage reportedly uses algorithmic models to recommend price increases to landlords by collecting competitively sensitive data from various landlords. This data is shared among subscribers to help them set or raise their rental prices uniformly, which allegedly eliminates competition and leaves renters with no choice but to pay higher prices.
The housing crisis in California has been exacerbated over recent decades as housing needs have outpaced production. As a result, many Californians struggle with rising housing costs, with approximately 700,000 at risk of eviction.
The amended lawsuit contends that the actions of RealPage and its co-defendants violate federal antitrust laws as well as California's Unfair Competition Law. Attorney General Bonta is joined by his counterparts from Colorado, Connecticut, Illinois, Massachusetts, Minnesota, North Carolina, Oregon, Tennessee, and Washington in this legal action.
The details of the amended complaint are available for public viewing.