Federal Judge Narrows Yardi Antitrust Lawsuit, Dismisses Out-of-State Defendants

The lawsuit, filed in September 2023 by Washington resident McKenna Duffy, alleges that Yardi facilitated the exchange of sensitive, non-public pricing data among landlords through its automated rent-setting platform, Revenue IQ, formerly known as RENTmaximizer. According to a statement in the complaint, the software enabled landlords to coordinate pricing decisions and even communicate directly with competitors through market surveys.

Yardi and multiple apartment operators had previously sought to dismiss the case, arguing that the plaintiffs lacked legal standing and were “attempting to manufacture a Sherman Act violation.” However, U.S. District Judge Robert Lasnik ruled in December 2024 that the claims could move forward, noting per a statement that “as technology has evolved, so too have methods of price fixing.”

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In his latest ruling, Lasnik narrowed the scope of the case by dismissing claims against 10 property management companies based outside Washington. These included Banyan Living Ohio LLC, Envolve Communities LLC, Grubb Properties LLC, The Habitat Company LLC, LumaCorp LLC, McWhinney Property Management LLC, Singh Management Co. LLC, Towne Properties Asset Management Company Ltd., Walton Communities LLC and Woodward Management Partners LLC.

According to a statement from the court, Lasnik determined that these companies did not have sufficient ties to Washington to fall under the court’s jurisdiction. He wrote that while the alleged conduct could have influenced rental markets beyond their regions, “such impacts were certainly not defendants’ goal and cannot support a finding that the non-resident LLC defendants purposefully directed activities toward Washington.”

Yardi has consistently denied wrongdoing. At the time of earlier proceedings, the company stated that its software does not rely on confidential competitor data. Instead, it uses client-provided property information and publicly available market data to generate pricing recommendations. A spokesperson for the company said, “There is nothing illegal about Yardi’s revenue management product, and the allegations against the company are simply false,” adding that the firm would continue to defend itself against what it described as baseless claims.

The case unfolds amid a broader wave of legal scrutiny over algorithmic pricing tools in the rental housing industry. In a separate matter, RealPage reached a settlement with the U.S. Department of Justice in November 2025 over similar allegations. According to a statement about the agreement, the settlement did not include financial penalties or admissions of wrongdoing but established limits on how the company can collect and use data.

RealPage said the outcome would help reassure the housing sector that such technologies can comply with federal antitrust standards, though multiple state attorneys general continue to pursue independent actions.

Meanwhile, cities across the United States have taken steps to restrict the use of algorithmic rent-setting tools. Per a statement in an October 2025 blog post from law firm Arnold & Porter, municipalities including San Francisco, Philadelphia, Minneapolis, Jersey City, Hoboken, Providence, San Diego and Seattle have enacted bans on such systems.

Source: Multi Family Dive