Renting: Massachusetts Joins Justice Department Lawsuit Against Property Management Platform
Massachusetts has taken a bold step by joining the Justice Department and nine other states in a lawsuit against a property management software company and some of its clients. The state’s Attorney General, Andrea Campbell, revealed that the lawsuit accuses RealPage and its clients of participating in an “anticompetitive algorithmic pricing scheme that harms renters.”
State Co-plaintiffs
Massachusetts now stands united with California, Colorado, Connecticut, Illinois, Minnesota, North Carolina, Oregon, Tennessee, and Washington in this legal battle. Together, these states are fighting against what they deem as a violation of the Sherman Antitrust Act by the accused parties.
In a joint effort, these states aim to put an end to the alleged unlawful scheme that decreases competition among landlords in apartment pricing. The lawsuit alleges that this scheme has harmed millions of renters across the country, with the landlords in question operating more than 1.3 million units in 43 states and the District of Columbia.
Defendants’ Response
Despite the serious accusations, RealPage and its clients have denied any wrongdoing. The company’s spokesperson, Jennifer Bowcock, expressed disappointment in the civil case, calling it flawed and blaming a lack of supply as the root cause of the housing affordability crisis.
Additionally, some defendants, such as Greystar Real Estate Partners LLC and Camden Property Trust, have vowed to vigorously defend themselves against the claims. They argue that many of the Department of Justice’s claims stem from actions taken during the COVID-19 pandemic and that they have taken steps to support residents during that challenging period.
Legal Ramifications
As the lawsuit unfolds, Massachusetts is seeking to restore competition in the rental market and recover civil penalties of up to $5,000 for each violation committed by the defendants. The state’s Attorney General, Andrea Campbell, emphasized the importance of accountability in ensuring a fair and competitive housing market for all residents.
Acting Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division echoed this sentiment, stating that today’s action aims to prioritize people over profits and make housing more affordable for millions of Americans.
In the face of rising housing costs and challenges in affordability, this lawsuit represents a significant step towards holding accountable those who undermine the rights of renters and the principles of fair competition in the housing market. As the legal battle unfolds, the outcome of this case could have far-reaching implications for landlords, renters, and the real estate industry as a whole.
