Equity Residential settlement overview:
- Who: Equity Residential agreed to a $56 million class action settlement with renter plaintiffs.
- Why: Plaintiffs claim landlords used RealPage software to share pricing data and fix rental prices.
- Where: The settlement is pending in Tennessee federal court.
- How to get help: If you signed a lease for an apartment or rental unit after Oct. 21, 2018, and your property manager used RealPage software, you may qualify for the RealPage price fixing lawsuit.
Equity Residential agreed to pay $56 million to resolve claims it participated in a rent price-fixing scheme that used RealPage’s revenue management software.
The proposed settlement is part of a broader multidistrict litigation alleging that landlords across the country used RealPage’s YieldStar and AI Revenue Management software to coordinate rental pricing and suppress competition.
According to the class action claims, landlords using the software shared confidential, competitively sensitive information, including pricing and lease data, with one another. Plaintiffs allege this allowed participating companies to align rent prices and avoid competing, resulting in higher housing costs for renters nationwide.
The class action lawsuit alleges the arrangement effectively created a “cartel” among competing landlords by enabling them to adjust rental prices based on shared data rather than market competition.
Equity Residential settlement includes payment, business practice commitments
In addition to the $56 million payment, the proposed settlement includes commitments related to Equity Residential’s business practices.
According to a Law360 report, the agreement includes provisions addressing how the company uses nonpublic data and its reliance on revenue management software, though the company stated these commitments are consistent with its current practices and will not require significant operational changes.
Equity Residential said it chose to settle to avoid the cost and uncertainty of prolonged litigation and to reduce potential exposure associated with complex antitrust claims.
The company also indicated it does not expect the settlement to materially impact its financial position, though it will increase its loss contingency reserves.
The case is part of ongoing litigation involving multiple landlords and property management companies. Other defendants have also reached settlements, including agreements totaling more than $140 million that previously received preliminary approval.
Last month, Camden Property Trust agreed to a $53 million settlement to resolve claims it conspired with other landlords to fix rent prices using RealPage revenue management software.
What do you think about these rent price-fixing claims? Let us know in the comments.
The RealPage antitrust class action lawsuit is In re: RealPage Inc. Rental Software Antitrust Litigation (No. II), Case No. 3:23-md-03071, in the U.S. District Court for the Middle District of Tennessee.
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