Greystar and 25 landlords settle rent-algorithm lawsuit for $141M
Greystar and 25 other landlords agreed to settle a class action lawsuit for $141 million, with Greystar paying $50 million. The lawsuit alleged they used RealPage's rent-setting algorithm to coordinate pricing and artificially inflate rents. All defendants denied wrongdoing but agreed not to share nonpublic information with RealPage going forward.
What happened
Greystar and 25 other property management companies agreed to pay more than $141 million to settle a class action lawsuit filed in Tennessee federal court accusing them of using RealPage's rent-setting algorithm to drive up housing costs.
The plaintiffs alleged that landlords shared nonpublic information with RealPage, which the software company used to enable the landlords to align their prices and push up rents.
Reported impact
The settlement would distribute funds among millions of tenants included in the settlement class.
Index analysis
RealPage's software provides daily recommendations to help landlords price their available apartments, with access to a vast trove of confidential information.
Governance controls
The companies agreed to no longer share nonpublic information with RealPage for its rent algorithm.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.