Colorado and Other States Settle $7 Million Lawsuit with Landlord Over Rent Price Coordination
Colorado and several other states have reached a $7 million settlement with one of America’s largest landlords over a lawsuit that accused the company and its peers of using software to illegally coordinate rent prices.
Colorado Attorney General Phil Weiser stated, “When corporate landlords share private data and use algorithms to coordinate and jack up rent prices, renters pay the price.” The settlement, which is subject to final approval from a federal judge, includes Colorado receiving over $1 million for antitrust enforcement and consumer protection efforts. Greystar, the landlord involved, will be prohibited from using revenue management software that incorporates sensitive data from other landlords.
Greystar, known as the largest landlord in the country, recently settled another price-fixing lawsuit for $50 million. The company operates over 45,000 units in Colorado alone.
The lawsuit, initially filed by the U.S. Department of Justice and Weiser against RealPage, the company behind the rent-setting software, has now included Greystar and other property management companies. Greystar settled with the Justice Department in August.
RealPage’s software has faced criticism for enabling price fixing and hiking rents above market rates. Colorado lawmakers have tried to ban the software’s use in the state, with Governor Jared Polis recently vetoing a bill that would have prohibited its use.
While settlement talks are ongoing in a separate case against Greystar over hidden fees and misleading advertising, the state has already reached a settlement with another property owner. The rest of the litigation is ongoing.
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