Real estate software company RealPage vows to fight Justice Department lawsuit

Real estate management software company RealPage has announced it will fight a civil antitrust lawsuit filed by the Department of Justice, saying the lawsuit's claims are “meritless.”

The U.S. Department of Justice (DOJ) and the attorneys general of eight states filed suit on Friday (August 23), alleging that RealPage's pricing algorithm violates antitrust laws.

The lawsuit accuses the company of illegally reducing competition in pricing among landlords and monopolizing the market for software that landlords use to price apartments, the Justice Department said in a press release Friday.

“We allege that RealPage's pricing algorithm allows landlords to exchange confidential, competitively sensitive information and adjust their rents,” Attorney General Merrick B. Garland said in the press release. “The use of software as an exchange mechanism does not exempt this system from liability under the Sherman Act, and the Department of Justice will continue to aggressively enforce the antitrust laws and protect the American people from those who violate them.”

When contacted by PYMNTS, RealPage said in an emailed statement that the Justice Department's allegations were “without merit” and that the company would “vigorously” defend itself against the allegations.

RealPage has long worked with the Justice Department to show that its software is deliberately designed to comply with the law, the statement said. When the Justice Department granted antitrust approval for the company's acquisition of LRO in 2017, the agency also analyzed the company's revenue management products and had no objections, the statement said.

“We are disappointed that after several years of education and cooperation on the antitrust issues surrounding RealPage, the Department of Justice has chosen this moment to bring a lawsuit that seeks to scapegoat pro-competitive technology that has been used responsibly for years,” RealPage said in its statement Friday. “It is merely a distraction from the fundamental economic and policy issues driving inflation across our economy – and housing affordability in particular – that should be the focus of policymakers in Washington, DC.”

Before filing the lawsuit on Friday, RealPage addressed “false and misleading claims” about the company and its revenue management software in a June statement and in a lengthy response.

The company was acquired by private equity firm Thoma Bravo in December 2020 for $10.2 billion, including debt assumption.

The eight states that joined the Justice Department in filing the lawsuit announced Friday include California, Colorado, Connecticut, Minnesota, North Carolina, Oregon, Tennessee and Washington, according to the press release.