RealPage Clears DOJ Criminal Investigation, Faces Ongoing Civil Suits

RealPage has confirmed that the U.S. Department of Justice (DOJ) has closed its criminal probe into pricing practices within the multifamily rental housing sector. The company announced on Friday evening that it had received a letter from the DOJ, which stated that the investigation into its activities had concluded.

In a statement, RealPage emphasized its extensive cooperation with the DOJ throughout the inquiry and noted that it was never identified as a target during the investigation. Despite the DOJ’s closure of the criminal case, the department has not updated its website or responded to inquiries from Multifamily Dive for further comment.

This marks a significant development in a case that has been ongoing since a 2022 ProPublica report raised concerns about RealPage’s pricing algorithm. The report suggested that the company’s software might have enabled the largest apartment owners in the U.S. to coordinate rent prices indirectly. The DOJ’s investigation, first reported by Bloomberg in March, focused on whether RealPage’s software facilitated price-fixing among major apartment owners and managers. According to Politico, the DOJ was investigating the possibility that the software allowed these companies to exchange sensitive pricing data that would typically be inaccessible to competitors, thereby raising potential antitrust concerns.

Related: RealPage Seeks Dismissal of DOJ Antitrust Suit, Citing Legal Flaws

In addition to the criminal investigation, RealPage is embroiled in several civil lawsuits. Last week, the company’s legal team requested the U.S. District Court for the Middle District of North Carolina to dismiss a civil suit filed by the DOJ and eight states. The company is also defending itself against multiple class-action suits, which are now concentrated in the U.S. District Court for the Middle District of Tennessee.

“RealPage will continue to aggressively defend itself in the remaining, previously filed civil lawsuits, which we believe are wholly without merit,” the company reiterated in its Friday statement.

While the closure of the criminal investigation may offer a degree of relief to RealPage, the company remains in the midst of ongoing legal battles.

Source: Bloomberg