(Reuters) -The U.S. Justice Department said on Friday that it had filed a proposed settlement to resolve claims against apartment manager Greystar in a case alleging algorithmic collusion and anticompetitive practices in rental markets.
If approved, the settlement would require Greystar, among other conditions, to refrain from using any anticompetitive algorithm that generates pricing recommendations using its competitors' data, the Justice Department said.
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The proposal would also require Greystar to refrain from sharing competitively sensitive information with competitors and accept a court-appointed monitor if it uses a third-party pricing algorithm that is not certified in the settlement terms, the department added.
The proposed U.S. settlement deal would require Greystar to cooperate with the United States in its ongoing lawsuit against RealPage. The Justice Department in 2024 sued RealPage over its revenue management software.
RealPage did not immediately respond to a request for comment about the lawsuit and GreyStar's potential cooperation.
Greystar has also reached a settlement in principle to resolve a related lawsuit brought by private attorneys representing renters.
The proposal includes what the plaintiffs' lawyers on Friday called “significant” monetary damages for tenants nationwide. The details of the accord will be presented to a judge for approval as early as October, they said.
“This agreement represents meaningful relief for renters affected by the alleged practices,” the plaintiffs' attorneys said in a statement. “We are pleased that Greystar has stepped forward to resolve these claims, and we commend the DOJ for its parallel efforts to protect competitive markets.”
Greystar in a statement on Friday denied any wrongdoing and said it maintains that its use of RealPage's revenue management software complied with applicable laws.
“The settlements provide clarity for Greystar and the industry at large,” Greystar said. The accords will allow the company to focus on its clients and business operations, it said.
(Reporting by Ismail Shakil in Ottawa and Mike Scarcella in Washington, Editing by Rosalba O'Brien)
