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North Carolina settles lawsuit with Cortland Management over AI rent-setting

North Carolina reached a settlement with Cortland Management, the state's largest landlord, prohibiting the use of AI software to set rental prices. The agreement is part of a broader Department of Justice lawsuit against RealPage for allegedly using artificial intelligence to inflate rents across the country.

15 April 2025 Β· Cortland Management, LLC Β· Governance, accountability and labour
15 April 2025
AII-1001-892492 sources ↓
Quick facts
Category
Governance, accountability and labour
Country
United States
Source
WRAL
Date
15 April 2025
Drafted by
Raidu Incident Detection

What happened

In August 2024, the United States Department of Justice filed a civil lawsuit against RealPage for using artificial intelligence to inflate rents across America, with landlords using the software causing rents to skyrocket and compete with 'ghost' rent prices.

In April 2025, North Carolina Attorney General Jeff Jackson announced a settlement with Cortland Management, LLC, the state's largest landlord owning more than 5,000 units in the Triangle area representing one third of all 1-3 bedroom local rentals, prohibiting the company from using data from AI websites like RealPage to set prices.

Cortland did not admit fault under the settlement terms but agreed to pay North Carolina $100,000 for attorney fees and consumer education.

Reported impact

Renters reported that the use of RealPage software by Cortland Management and other landlords caused rent prices to increase unfairly, forcing renters to struggle with high costs amid economic uncertainty.

Index analysis

The settlement prohibits Cortland Management from using RealPage's AI software to set rental prices, addressing the use of artificial intelligence combined with private data to generate rent prices that authorities said contributed to high rates.

Governance controls

North Carolina Attorney General Jeff Jackson worked alongside Colorado Attorney General Philip Weiser and the Department of Justice to bring the lawsuit, with Jackson stating that the settlement means 'one less landlord using RealPage's unlawful AI software to charge North Carolinians unfair rent.'

The lawsuit continues against five other landlords that manage approximately 70,000 units across North Carolina.

Classification

Category
Governance, accountability and labour
Industry
Real estate
Country
United States
Harm status
Actual harm
Intent
Unintentional
Timing
Unknown
Harm types
Economic or property
Harmed
Consumers
Consequences
Fine or settlement, Litigation
AI systems
RealPage
Regulations
FCRA (cited)

Sources and evidence

This record was researched and written by the Index, based on the following original reporting.

WRAL
North Carolina wins lawsuit to stop landlords from overpricing rentals
15 April 2025
WCCB Charlotte's CW
Second largest NC landlord reaches settlement in rent inflation lawsuit - WCCB Charlotte's CW
17 April 2025