Attorney General Jeff Jackson has reached a settlement with Cortland Management LLC, a significant landlord in North Carolina. The settlement resolves accusations from Jackson's lawsuit filed in January, which charged Cortland and other landlords with unlawfully collaborating through RealPage’s AI software to raise rents in the state. Cortland stands as the second-largest landlord involved in the lawsuit, overseeing more than 5,000 units.
Once the court confirms the settlement, Cortland will cease using non-public data from other landlords to establish rents. This action will mark one of the first settlements to prohibit a major landlord from the illegal use of RealPage’s software. Jackson commented, “Today’s settlement means one less landlord is using RealPage’s unlawful AI software to charge North Carolinians unfair rents. We’re going to keep fighting this case to make sure all landlords and property managers play by the rules and people can afford rent.”
The settlement requires Cortland to report its compliance efforts to the Attorney General’s Office, allows for inspections by the Attorney General to ensure adherence, and authorizes enforcement actions in court if necessary.
The Attorney General's broader legal fight against five other landlords and the software company RealPage remains active. Jackson alleges that RealPage exploited landlords’ sensitive information to develop a pricing algorithm that inflated rents, infringing on antitrust laws. These allegations suggest that the landlords colluded with RealPage and amongst themselves to share confidential details on rent pricing, occupancy, strategies, and discounts, leading to artificially high rent prices.
The landlords involved own or manage over 70,000 units across North Carolina. According to Jackson, the alleged misconduct burdens North Carolinians who struggle with rising rental prices and adversely affects landlords who adhere to fair business practices.
A copy of the settlement with Cortland is available for public viewing.