New Jersey sues landlords, software company over rent-fixing claims
Attorney General Matt Platkin said RealPage and almost a dozen property-management firms colluded to drive up apartment rents. (Dana DiFilippo | New Jersey Monitor)
Attorney General Matt Platkin sued 10 of New Jersey's largest landlords and RealPage Inc., a property management software company, accusing them of colluding to raise rents in violation of state and federal antitrust and consumer protection laws.
In a federal lawsuit filed Wednesday, Platkin said the alleged scheme forced tens of thousands of apartment renters to overpay and contributed to the state's shortage of affordable housing.
'The skyrocketing rental prices that we're experiencing in New Jersey are not the result of mere competition or mysterious market forces. What we are seeing and what so many hard-working New Jerseyans are experiencing is the result of deliberate market manipulation. So today, we filed a lawsuit to stop it,' Platkin said during a midday briefing with reporters in Newark.
The action comes two years after Accountable.US, a D.C.-based watchdog nonprofit, released a report exposing 'housing profiteering.' The group urged officials in several states, including Platkin, to act on the issue in 2023 and again last year. Platkin did not mention the report or call to action Wednesday.
He said RealPage and the landlords set apartment rents based on RealPage's algorithmic pricing software and aligned their prices to avoid competition that otherwise would have checked runaway rents. In so doing, Platkin said, they violated the federal Sherman Act, the New Jersey Antitrust Act, and the New Jersey Consumer Fraud Act.
Named as defendants are: RealPage; Morgan Properties Management Company; AvalonBay Communities Inc.; Kamson Corporation; LeFrak Estates and its subsidiary Realty Operations Group; Greystar Management Services; Aion Management; Cammeby's Management Company of New Jersey; Veris Residential Inc.; Russo Property Management; and Bozzuto Management Company. Additional defendants may be added, as the investigation remains ongoing, Platkin's office said.
Platkin accused the companies of 'unconscionable business practices that deceive and mislead consumers into believing the rental prices that they charge are market rate.'
Instead, he said, the companies shared confidential, proprietary information and used RealPage's 'anticompetitive algorithm' to set rents, which ballooned prices.
'These defendants work together as a rent-setting cartel conspiring to make themselves richer by preying on the thousands of New Jerseyans just looking for a safe, affordable place to live,' Platkin said.
Platkin pointed to a Harvard University study last year that found that half of New Jersey renters are cost-burdened, meaning they spend more than 30% of their income on rent.
By suing, Platkin added, he wants to stop RealPage and landlords from 'ripping off the people of New Jersey.' He's asking a judge to appoint a corporate monitor, at the defendants' expense, to carry out court remedies and ensure the alleged scheme does not continue.
'I'm not going to tolerate corporate greed that violates the law and hurts our residents,' he said. 'Our lawsuit today is seeking to make RealPage both stop their illegal conduct and pay back their illegal profits.'
RealPage did not respond to a request for comment. Mike Semko, the company's associate general counsel, told lawmakers last year that the claims made against RealPage are 'patently, categorically false.' The Legislature is considering a bill that would bar landlords from using algorithmic software to set rent prices.
Caroline Ciccone, president of Accountable.US, welcomed the lawsuit.
'As everyday costs continue to rise for Americans, it's critical that elected officials step up and tackle price-gougers like RealPage, whose algorithm is set up to allow corporate landlords to push rental rates to historic highs,' Ciccone said. 'We applaud Attorney General Platkin for fighting for New Jersey renters and putting an end to this potentially illegal price-fixing scheme.'
SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
12 hours ago
- Yahoo
RealPage Is Under Fire For Its Rent Algorithm — But A GOP Tax Plan Could Protect The Company From Lawsuits And Local Bans
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. RealPage, the Texas-based software company embroiled in a firestorm of controversy and legal struggles due to its algorithmic rental price setting, may have found an escape in its fight against state and local governments. The company has the latest GOP tax bill to thank for its possible lifeline. The bill, which passed the House on May 22, would hinder local and statewide efforts to ban algorithmic price-setting software, including RealPage and Yardi Systems, due to a provision that allows artificial intelligence-based decisions to prevail for 10 years. However, the bill would not prevent the civil lawsuit against RealPage brought by the Department of Justice from continuing. Don't Miss: Invest Where It Hurts — And Help Millions Heal: If there was a new fund backed by Jeff Bezos offering a ? Several U.S. cities, including San Francisco, Philadelphia, Providence, Rhode Island, and most recently, Jersey City, New Jersey, have implemented bans on the software, with several other cities on the verge of doing so, the Journal reports. The cities allege that RealPage and others help landlords engage in illegal collusion to ensure rental prices continue to rise by collecting and analyzing confidential data and using it against residents. Should the bill pass Congress, all that could change. "We would no longer be able to enforce this ban," Providence City Council President Rachel Miller told the Journal. Local governments would not take the new law lying down should it pass. Suing the federal government as a first retaliatory measure, Miller told the Journal. Secondly, they would lean on tenant-protection laws. "Rent control—that would be the biggest tool if folks are using algorithms to jack up rents," Jersey City Councilman James Solomon, who was recently successful in banning RealPage in his city, told the Journal. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — RealPage is fighting back against the bans, suing Berkeley, California, over its ban. Meanwhile, landlord advocacy trade groups, such as the National Multifamily Housing Council, have intensified their lobbying efforts, arguing that the housing shortage, rather than algorithmic pricing, is the primary reason for rent increases. It has also reiterated RealPage's defense that landlords can refuse to follow RealPage's recommendations and set their own rental prices, and that large landlords do not contribute to the majority of rental units in the U.S. Rather, mom-and-pop landlords who do not use RealPage offer the majority of rentals. However, NMHC staff and others contributed suggestions to a House Financial Services Committee that shaped the current AI component in the GOP tax bill, according to The Wall Street Journal. "At a time when housing providers face increasing pressure to meet booming demand, tax policy should not stand in the way. Indeed, tax policy should lead the way," NMHC President Sharon Wilson Géno said in a letter of support sent to the chairman of the panel that added the provision to the new tax bill, the Journal has already suffered a reputation loss and the loss of potential business from landlords who have backed away from using it after the Atlanta offices of multifamily company Cortland were raided by the FBI last year as part of the DOJ investigation. Cortland ended up settling with North Carolina Attorney General Jeff Jackson, the only management company to have done so. "Everybody that I know has stopped using RealPage just out of sheer terror," Tony Julianelle, chief executive at real-estate brokerage Atlas Real Estate, told the Journal. RealPage has a lot to lose — $73 billion, according to the Journal, should it be unsuccessful in the lawsuits it is facing. Additionally, it would face significant restrictions on how its revenue management software is used. However, Congress could change the narrative should it diminish the influence of local and state lawmakers in their fight against RealPage, taking the wind out of the sails of the larger opposition. "It's not a get-out-of-jail-free card," Kevin Weller, a New Jersey tenant who filed one of the largest class-action lawsuits against RealPage, told the Journal "But it could muddy the waters." . With over $1 million in dividends paid out last quarter and a growing selection of properties across various markets, Arrived offers an attractive alternative for investors seeking to build a diversified real estate portfolio. In October 2024, Arrived sold The Centennial, achieving a total return of 34.7% (11.2% average annual returns) for investors. Arrived aims to continue delivering similar value across our portfolio through careful market selection, attentive property management, and thoughtful timing in sales. Looking for fractional real estate investment opportunities? The features the latest offerings. Image: Shutterstock This article RealPage Is Under Fire For Its Rent Algorithm — But A GOP Tax Plan Could Protect The Company From Lawsuits And Local Bans originally appeared on
Yahoo
21 hours ago
- Yahoo
Jersey Fresh wine and beer could be coming to a shelf near you
New Jersey lawmakers advanced a bill on Thursday, June 12, 2025, that would allow wines and beer to feature 'Jersey Fresh' labels — if they're made with at least 51% of in-state produce, like grapes for wine. (Photo by Amalie Hindash for New Jersey Monitor) Wines and beer made with Garden State products could feature new 'Jersey Fresh' labels under a bill lawmakers advanced Thursday. 'I would love to encourage our producers of our spirits to get their products, get what they need, their supplies here in the state. Let's encourage it,' said Assemblywoman Andrea Katz (D-Burlington). The Jersey Fresh program began in the 1980s to inform consumers about produce grown in the state and promote buying from local businesses. In order for farmers to use a Jersey Fresh logo, they must show they meet U.S. Department of Agriculture standards and the USDA can conduct regular inspections. Under the bill, a beverage should be made with at least 51% of in-state produce — like potatoes for vodka or barley for beer — to qualify for the Jersey Fresh designation. Farmer John Hart told the committee the legislation would help small farms promote their products and bring farmers into another industry. While Assemblywoman Dawn Fantasia (R-Sussex) called the bill a step in the right direction, she said that threshold is too high for businesses in New Jersey — home to harsh winters. She said she's heard from distilleries and breweries who find it's hard to source products year-round to meet Jersey Fresh standards. 'In off-season, we might be importing grapes in, so unless we're counting the water as being sourced in New Jersey, I think the 51% is too high of a standard,' Fantasia said. Katz said the standard is set by the agricultural industry. And the idea behind the bill was borne out of a New Jersey agricultural convention where none of the spirits had Jersey labeling on them. 'It's just a little bit of a unique label on that to show us that it's from New Jersey, and hopefully it will grow,' said Katz. Members of the Assembly Commerce, Economic Development and Agriculture Committee passed the bill by a 7-2 vote, with one abstention from Fantasia. The measure, introduced last month, does not yet have a Senate companion. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Chicago Tribune
a day ago
- Chicago Tribune
Judge denies Zakai Zeigler's request for preliminary injunction in pursuit of 5th season of NCAA eligibility
KNOXVILLE, Tenn. — A federal judge on Thursday denied Tennessee point guard Zakai Zeigler's request for a preliminary injunction allowing him to play a fifth season of Division I basketball in five years. U.S. District Judge Katherine A. Crytzer listened to arguments in a Friday hearing in Knoxville and entered her denial Thursday morning. She wrote that Zeigler failed to demonstrate he would likely succeed on his argument that the NCAA keeping him from playing a fifth season of Division I basketball is a violation under the Sherman Act. 'This Court is a court of law, not policy,' Crytzer wrote in her order denying the injunction. 'What the NCAA should do as a policy matter to benefit student athletes is beyond the reach of the Sherman Act and TTPA and by extension, this Court.' The two-time SEC defensive player of the year asked for an injunction when he sued the NCAA on May 20 over its rules limiting him to four seasons in a five-year window as an unlawful restraint of trade under both federal and Tennessee laws. His lawsuit argues he could earn between $2 million and as much as $4 million with another season. His attorneys made clear this is just a first step in this legal fight. 'We are disappointed the Court declined to grant a preliminary injunction on the basis that the NCAA does not directly control NIL compensation, just days after the House settlement confirmed they would do exactly that,' according to a statement from Litson PLLC and the Garza Law Firm. 'This ruling is just the first chapter of what we believe will ultimately be a successful challenge. We intend to press forward and are evaluating the best path ahead for Zakai.' The judge wrote that the harms Zeigler argues he would suffer can be addressed with a future damages award. She also noted the 'fixed number of roster spots' for each Division I basketball team and that 'an injunction would run the risk of harming currently enrolled players committed to a university and current high school seniors being recruited.' The NCAA argued in its brief before the hearing that Zeigler's injunction request should be denied because he is asking the court to make him the first athlete in history to play a fifth season in Division I 'as a matter of right.' During the hearing, the judge asked Zeigler's attorneys to file a quick brief answering whether Zeigler is an 'intercollegiate athlete' as defined under state law and what legal standard applies to Zeigler's claim under the Tennessee Trade Practices Act.
