The U.S. Justice Department has taken a significant step towards resolving claims against apartment manager Greystar in a case involving algorithmic collusion and anticompetitive practices in rental markets. According to Reuters, a proposed settlement has been filed by the Justice Department that, if approved, would require Greystar to adhere to various conditions aimed at preventing anticompetitive behavior.
One of the key conditions of the proposed settlement is that Greystar must refrain from using any algorithm that generates pricing recommendations using its competitors’ data. This measure is intended to prevent the manipulation of rental prices in a way that harms competition in the market. Additionally, Greystar would be required to avoid sharing sensitive information with competitors and accept a court-appointed monitor if it utilizes a third-party pricing algorithm that is not certified in the settlement terms.
Furthermore, the proposed settlement deal would also require Greystar to cooperate with the United States in its ongoing lawsuit against RealPage, a company that was sued by the Justice Department in 2024 over its revenue management software. RealPage has yet to respond to the lawsuit and Greystar’s potential cooperation.
In a related development, Greystar has reached a settlement in principle to resolve a lawsuit brought by private attorneys representing renters. The settlement includes significant monetary damages for tenants nationwide, with the details of the agreement set to be presented to a judge for approval as early as October.
The plaintiffs’ lawyers have expressed satisfaction with the proposed settlement, stating that it represents meaningful relief for renters affected by the alleged practices. They commend Greystar for stepping forward to resolve the claims and also praise the DOJ for its efforts to protect competitive markets.
In response to the developments, Greystar has denied any wrongdoing in a statement issued on Friday. The company maintains that its use of RealPage’s revenue management software was in compliance with applicable laws. Greystar views the settlements as providing clarity for the company and the industry as a whole, allowing them to focus on serving their clients and running their business operations.
Overall, the proposed settlement and related agreements mark a significant step towards addressing anticompetitive practices in the rental market. By cooperating with the Justice Department and private attorneys, Greystar is taking steps to resolve claims and ensure fair competition in the industry.
This article was reported by Ismail Shakil in Ottawa and Mike Scarcella in Washington, with editing by Rosalba O’Brien.
