Colorado and several other different states have reached a $7 million settlement with one in every of America’s largest landlords over a lawsuit that accused the corporate and its friends of utilizing software program to illegally coordinate hire costs.
“When company landlords share personal information and use algorithms to coordinate and jack up hire costs, renters pay the value,” Colorado Lawyer Normal Phil Weiser mentioned in an announcement Tuesday asserting the settlement. “This settlement sends a transparent message: We won’t tolerate practices that allow collusion, hurt competitors and make housing much less inexpensive for Coloradans.”
The proposed settlement with Greystar was filed Tuesday morning and nonetheless wants last approval from the federal choose overseeing the case, which was initially filed final yr. Underneath the deal’s phrases, Colorado would obtain greater than $1 million “to help antitrust enforcement, shopper safety work, and associated investigations,” Weiser’s workplace mentioned. Greystar would even be prohibited from utilizing any income administration software program that includes “nonpublic, competitively delicate information from different landlords to generate pricing suggestions.”
The remainder of the cash could be distributed among the many different eight states which are a part of the lawsuit. Greystar is the most important landlord within the nation, in keeping with Reuters, and it reached a separate $50 million settlement final month to finish one other price-fixing lawsuit introduced by tenants. Weiser’s workplace beforehand mentioned the corporate operates greater than 45,000 items in Colorado alone.
Greystar didn’t instantly reply to a request for remark.
The go well with was initially filed by the the U.S. Division of Justice and Weiser towards RealPage, the corporate that makes the rent-setting software program utilized by Greystar and different property administration firms. Greystar and several other different giant property house owners have been added to the go well with in January.
Greystar settled with the Justice Division in August.
RealPage’s software program has been broadly criticized for allegedly enabling value fixing and climbing rents increased than they in any other case could be — prices the corporate has denied. Final yr, the Biden administration mentioned that Denver renters who lived in properties that used RealPage’s software program paid greater than $1,600 in extra hire yearly.
Colorado lawmakers have repeatedly tried to ban using RealPage’s software program within the state. A primary try, in 2024, failed within the state Senate. Democratic lawmakers tried once more this yr and efficiently handed the invoice, just for Gov. Jared Polis to veto it.
The state beforehand reached a settlement with one of many different property house owners in April. The remainder of the litigation stays ongoing. Weiser’s workplace can be nonetheless suing Greystar in a separate case over alleged hidden charges and deceptive promoting, although courtroom filings point out settlement talks are ongoing.
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