- Four states are challenging settlements in a RealPage-linked antitrust lawsuit, claiming the proposed deals are insufficient and legally flawed.
- The states argue that landlords paid minimal amounts relative to the alleged damages and that the settlements lack adequate safeguards against future rent coordination.
- The lawsuit stems from RealPage’s revenue management software, which is alleged to have enabled rent-fixing among major landlords and property managers across the US.
A Push For Accountability
Attorneys general from Washington, DC, Maryland, New Jersey, and Kentucky have filed a request with a federal judge in Nashville. They are asking the court to reject settlements in a major class-action case, reports Bisnow. The case involves RealPage’s AI-driven rent pricing platform. The case alleges a group of landlords used the software to collude and artificially inflate rents in multiple US housing markets.
The proposed settlements, reached in October, involve 27 property management firms, including major players like Greystar, Avenue5, and Bozzuto Group. But state officials argue the landlords are offering “very low recoveries” compared to the financial harm renters endured.
The States’ Objections
In their filing with the US District Court for the Middle District of Tennessee, the attorneys general outlined several concerns:
- Inadequate restitution: The financial penalties proposed, including Greystar’s $50M settlement—the largest of the group—are considered insufficient given the scale of the alleged rent inflation.
- Lack of transparency: The settlements don’t disclose how renters would be compensated or identify who was affected.
- Missing safeguards: The agreements reportedly fail to include restrictions on the future use of similar software, leaving room for potential continued rent coordination.
The filing also includes new evidence gathered during state investigations—evidence not previously reviewed in the class-action suit. Portions of the document remain sealed, but it alleges that firms like Greystar and Bozzuto played “central” and “active” roles in the alleged price-fixing scheme.
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A Broader Legal Landscape
This civil case is part of a growing legal firestorm surrounding RealPage and its YieldStar (now AI Revenue Management) platform. At least 22 other defendants, including RealPage itself, have not reached a settlement. Discovery is still underway in a parallel federal antitrust case involving more than 100 depositions and millions of documents.
Greystar, which manages 900K apartments nationwide, and Cortland are among firms that have reached separate cooperation agreements or consent decrees. RealPage, for its part, has denied wrongdoing, though it has modified parts of its software following increased scrutiny.
Legislative And Regulatory Fallout
The controversy was first spotlighted by a 2022 ProPublica investigation and has since triggered legislative responses in at least nine US jurisdictions. In September, RealPage agreed to a $200K Nevada settlement for rental aid, but the deal still awaits court approval.
What’s Next
The attorneys general are urging the court to withhold approval of the current settlements. The judge’s next decision could reshape how future deals are negotiated in this sprawling antitrust case. State officials are pushing for stronger terms, greater transparency, and real structural reforms to prevent similar coordination in the future.
According to the filing, early rejection of preliminary settlements is not unusual. However, without major changes, these deals may fall short of meeting federal standards of fairness and adequacy.
