Allegations of Algorithmic Collusion
Lead plaintiff Wylie Duffy filed the original suit in 2023, which was later consolidated with two related cases earlier this year. Plaintiffs claim Yardi’s tools acted as a hub for landlords to coordinate rent prices, creating an “invisible handshake” across the rental market.
The court previously denied dismissal motions, rejecting landlords’ claims that they acted independently. Judge Lasnik countered that the only reason companies would share internal rent data with Yardi was to participate in coordinated pricing efforts.
The case falls under a growing wave of algorithmic price-fixing lawsuits, where software providers are accused of enabling covert industry-wide collusion.
Regulators Crack Down on Pricing Algorithms
The U.S. Department of Justice ramped up scrutiny in August 2024, filing a rental price-fixing suit against RealPage Inc., alleging its software allowed landlords to use aggregated data to artificially raise prices.
Meanwhile, Greystar Management Services LLC, the nation’s largest residential landlord, reached a cooperation deal with the DOJ this summer over similar allegations.
Yardi, for its part, is fighting the claims head-on, even allowing early access to its source code in state and federal court to prove its systems don’t facilitate collusion.
