The layoffs embody staff at numerous ranges of the corporate and are available as RealPage faces scrutiny from federal regulators, who declare its software program permits landlords to collude on hire.
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Within the face of mounting authorized challenges and a federal investigation into one of many core points of its enterprise, rental knowledge agency RealPage laid off 4 p.c of its workforce this week, in response to stories.
The layoffs embody staff at numerous ranges inside the group, in response to Bisnow and posts on social media, and are available as RealPage faces proposed class-action lawsuits and scrutiny from federal regulators, who declare the corporate’s software program permits property house owners to collude on pricing. The corporate helps lots of the nation’s largest landlords set optimum rental charges, which regulators have stated quantities to price-fixing.
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“RealPage is hyper focused on innovation and accelerating its business growth in 2024 and beyond, and as a result has made the decision to eliminate a small number of roles within the company,” Jennifer Bowcock, senior vp of communications and inventive at RealPage, stated in an announcement.
“We didn’t make these decisions lightly, and we are committed to supporting our employees during this transition inside and outside of RealPage,” Bowcock added.
A bunch of renters filed a authorized problem in October 2022 alleging RealPage was on the middle of an unlawful “cartel” that drove up hire at unprecedented charges beginning in 2016. Brian Schwalb, lawyer normal of Washington D.C., sued the corporate in November, and Arizona Legal professional Common Kris Mayes filed go well with in February.
These lawsuits adopted an exposé within the information outlet ProPublica, which gave readers an in-depth take a look at how RealPage helped landlords obtain the best hire the market would enable.
Property managers for buildings owned by America’s largest landlords used the hire costs RealPage’s software program really useful about 90 p.c of the time, in response to one of many lawsuits. The practices amounted to a monopoly, the renters’ go well with alleged.
RealPage has denied wrongdoing and defended its software program. It has stated landlords are welcome to just accept or ignore the recommendation of its rent-setting algorithm, and that many typically do. It stated its software program recommends hire adjustments in all instructions, and never simply up, leading to what it says are market-driven rental costs.
In an announcement shared with Inman, Bowcock denied that the layoffs have been associated to the continued litigation.
“I’ve seen some media reporting on our actions this week as connected to the antitrust matters,” Bowcock stated. “I can say there is no connection with this action and the company’s antitrust lawsuit.”
Nonetheless, federal regulators are keeping track of the corporate. The U.S. Division of Justice has opened a felony investigation into the corporate, Politico reported in March.
Assistant Legal professional Common Jonathan Kanter has not too long ago advised to The New York Instances that RealPage was “a concern.”
“I often say that if your dog bites somebody, you’re responsible for your dog biting somebody,” Kanter advised The Instances. “If your A.I. fixes prices, you’re just as responsible.”
