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Landlord FPI Settles Lawsuit Over Pricing Algorithm With $2.8 Million Deal

By  |  September 29, 2025

Multifamily property manager FPI Management has reached a preliminary settlement of $2.8 million in a lawsuit that accuses the company and other landlords of conspiring to inflate rental costs across the United States. According to Reuters, the deal, filed on September 26 in federal court in Seattle, marks the first settlement in the ongoing case and still requires judicial approval.

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    The 2023 lawsuit alleges that property owners and managers coordinated rental prices through software provided by Yardi Systems, which is also a defendant in the case. Per Reuters, the plaintiffs argue that landlords shared confidential data using Yardi’s revenue management platform, enabling them to synchronize rent hikes and maximize profits.

    California-based FPI, which manages over 165,000 rental units in 23 states, has denied wrongdoing but agreed to cooperate with plaintiffs as part of the settlement. The company said it will provide “reasonable evidentiary cooperation” to help pursue claims against other defendants. Reuters reported that FPI also accepted certain restrictions for three years following settlement approval, including a pledge not to use software requiring it to adhere to rent recommendations at a set frequency.

    Related: REX Real Estate Seeks Supreme Court Review of Antitrust Ruling

    FPI and Yardi did not immediately respond to requests for comment, and attorneys for the tenants bringing the case also declined to comment, Reuters noted. The case, formally titled In re Yardi Revenue Management Antitrust Litigation, is being heard in the U.S. District Court for the Western District of Washington.

    The litigation is part of a broader wave of consumer lawsuits challenging the use of revenue management tools in the housing and hospitality industries.

    Source: Reuters