(Reuters) -The U.S. Justice Division stated on Friday that it had filed a proposed settlement to resolve claims in opposition to condo supervisor Greystar in a case alleging algorithmic collusion and anticompetitive practices in rental markets.
If permitted, the settlement would require Greystar, amongst different situations, to chorus from utilizing any anticompetitive algorithm that generates pricing suggestions utilizing its rivals’ knowledge, the Justice Division stated.
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The proposal would additionally require Greystar to chorus from sharing competitively delicate info with rivals and settle for a court-appointed monitor if it makes use of a third-party pricing algorithm that isn’t licensed within the settlement phrases, the division added.
The proposed U.S. settlement deal would require Greystar to cooperate with the USA in its ongoing lawsuit in opposition to RealPage. The Justice Division in 2024 sued RealPage over its income administration software program.
RealPage didn’t instantly reply to a request for remark in regards to the lawsuit and GreyStar’s potential cooperation.
Greystar has additionally reached a settlement in precept to resolve a associated lawsuit introduced by non-public attorneys representing renters.
The proposal contains what the plaintiffs’ legal professionals on Friday referred to as “important” financial damages for tenants nationwide. The small print of the accord might be offered to a choose for approval as early as October, they stated.
“This settlement represents significant reduction for renters affected by the alleged practices,” the plaintiffs’ attorneys stated in an announcement. “We’re happy that Greystar has stepped ahead to resolve these claims, and we commend the DOJ for its parallel efforts to guard aggressive markets.”
Greystar in an announcement on Friday denied any wrongdoing and stated it maintains that its use of RealPage’s income administration software program complied with relevant legal guidelines.
“The settlements present readability for Greystar and the business at massive,” Greystar stated. The accords will permit the corporate to concentrate on its purchasers and enterprise operations, it stated.
(Reporting by Ismail Shakil in Ottawa and Mike Scarcella in Washington, Enhancing by Rosalba O’Brien)
