The U.S. Department of Justice (DOJ) has filed a lawsuit against Cushman & Wakefield (CWK.N) and five other major landlords over alleged anticompetitive behavior in the rental housing market. The action expands the DOJ’s ongoing investigation into what it terms “algorithmic collusion”—the practice of landlords using software tools to coordinate rent prices.
The lawsuit, filed on Tuesday, comes as part of an effort to tackle unfair pricing practices in the rental sector. The DOJ claims that property management software company RealPage enabled landlords to unlawfully share sensitive rental pricing information. This software, which reportedly recommends rental prices based on collected data, allegedly allowed landlords to coordinate pricing strategies. RealPage has denied the allegations and is seeking to have the lawsuit dismissed.
In the amended lawsuit, Cushman & Wakefield, along with Greystar Real Estate Partners, Blackstone’s LivCor, Camden Property Trust, Pinnacle Property Management Services (a subsidiary of Cushman), and Willow Bridge Property Co. are accused of using RealPage’s platform to exchange non-public rental pricing information. According to the DOJ, the companies also communicated directly through calls and user groups facilitated by RealPage, further promoting coordination among competitors.
Cushman & Wakefield responded to the lawsuit, asserting that its Pinnacle unit is solely a property manager and does not own properties or set rental prices. Greystar similarly denied any involvement in anticompetitive conduct, vowing to defend against the claims in court.
Meanwhile, Cortland Management, one of the companies named in the initial lawsuit, has agreed to settle the charges. Cortland emphasized in a statement that its proprietary revenue management software, which does not rely on data from external sources, helped it avoid the alleged collusion.
The lawsuit, which was originally filed in North Carolina, has expanded to include several other states, including Illinois and Massachusetts. The DOJ claims that the alleged collusion has likely harmed renters in a range of local housing markets, including those in California, Colorado, Connecticut, Minnesota, North Carolina, Oregon, Tennessee, and Washington.
This legal action signals a growing focus on the practices of major property management companies, with the DOJ seeking to ensure that rental markets remain competitive and fair for consumers.
Read more:
UK CMA To Launch Investigations Into Big Tech Companies With New Digital Market Powers
The War On Drugs: A Call For Legalization To End Harmful Policies
Lawsuit Targets Epa’S Pollution Standards, Claiming Neglect Of Endangered Species Protections