Landlord Eviction Moratorium Lawsuit Grows to 2,600

More than 2,600 landlords have joined a federal lawsuit seeking compensation for losses tied to the pandemic-era eviction moratorium, according to a September 2026 filing in the US Court of Federal Claims. Bisnow reports that the plaintiff group has grown more than 75% since spring as attorneys negotiate a potential settlement.

The Darby Development Co. Inc. v. United States case originally sought $26B in restitution, arguing that the federal ban on evictions amounted to a taking of private property under the Fifth Amendment. A settlement under discussion could instead require the federal government to pay plaintiffs around $1B, according to Multifamily Dive.

The Moratorium’s Legal Fallout

The federal eviction moratorium took effect in September 2020 and remained in place through July 2021. President Donald Trump established it during his first term, while President Joe Biden was in office when it ended. Cities and 43 states also enacted longer-lasting eviction restrictions, according to the lawsuit.

The original federal case faced a setback in 2022, when a federal court dismissed the landlords’ claims. That changed in 2025, when an appeals court ruled in favor of the plaintiffs and allowed the case to proceed.

The legal argument centers on whether temporarily preventing landlords from removing tenants constituted a physical taking. That distinction matters because physical takings claims can be treated differently from regulatory takings under the Fifth Amendment.

The Details

The latest filing brings the plaintiff count above 2,600, up from more than 1,500 landlords included in the complaint in May 2026. Most owners listed in the accompanying spreadsheet operate portfolios of fewer than 1,000 units, although several larger operators are also participating.

Florida-based American Landmark is the largest landlord among the plaintiffs, with 32,561 units across six states. Las Vegas-based Advanced Management Group and Ovation Property Management follow, with portfolios of roughly 8,500 units each.

The plaintiffs initially estimated industrywide losses from the eviction moratorium in the tens of billions of dollars. The current settlement discussions could significantly reduce the amount originally sought, with Multifamily Dive reporting a potential payment of approximately $1B.

More Landlords, Broader Claims

The expansion of the Darby Development lawsuit reflects the scale of the property-owner losses being alleged from the federal eviction restrictions. The plaintiff group has added more than 1,100 landlords since May, according to the filings cited by Bisnow.

The deadline for joining the existing Darby Development suit has now passed, according to Multifamily Dive. That does not necessarily close the door on additional legal claims, however.

Anna Wills, an associate at Duane Morris, told Multifamily Dive that the 2025 appeals court ruling could potentially support additional claims against the federal government related to the eviction moratorium. Her comments point to a broader legal question beyond the current plaintiff group, particularly around how courts treat government restrictions that temporarily limit a property owner’s ability to use or control an asset.

Why It Matters

For multifamily owners, the case is significant because it tests whether pandemic-era eviction restrictions crossed the constitutional line from regulation into a compensable taking. The distinction could influence how property owners approach future claims involving government intervention in property rights.

What’s Next

The immediate focus is whether the federal government and plaintiffs can reach a settlement covering the more than 2,600 landlords now in the case. The reported $1B figure remains part of ongoing negotiations rather than a finalized payment.

The existing deadline for joining the Darby Development lawsuit has passed, but potential claims arising from the 2025 appeals ruling could keep the broader legal issue alive. For property owners, the next key development will be whether the current case produces a settlement and what framework it establishes for compensation tied to the pandemic eviction restrictions.