Renters Sue Yardi and Other California Landlords for Conspiring to Charge Inflated Rental Prices
Cotchett Pitre & McCarthy LLP filed a lawsuit on behalf of renters challenging a cartel composed of California Defendants, identified below, that colluded and conspired to artificially inflate the rental prices of multifamily residential units above competitive levels through their usage of a centralized pricing software algorithm, called “RENTmaximizer,” created by Defendant Yardi Systems, Inc. (“Yardi”). Yardi operates RENTmaximizer to promote total industry profits at the expense of competition, resulting in higher rents and lower occupancy in California.
The case was filed on February 8, 2024 in Alameda County Superior Court. The California Defendants are: Yardi Systems, Inc., FPI Management, Inc., LeFever Mattson Property Management, Legacy Partners, Inc., Manco Abbott, Inc., and Balaciano Group f/k/a California Home Builders and DEELS Properties.
Adam Zapala, a partner at Cotchett, Pitre & McCarthy said:
"California’s renters have long felt the rental price squeeze. We have one of the most expensive rental markets in the country. The goal of affordable housing for all cannot be realized when Rental Management Companies have all agreed to use a common pricing algorithm for the express purpose of increasing rents. for causing inflated prices in the rental market. We believe this violates antitrust laws and harms consumers by artificially setting prices."
If you have any information relevant to this case, or a question about the litigation, please contact Adam Zapala at CPM at (650) 697-6000.