The layoffs, which include employees at all levels of the company, come as RealPage faces scrutiny from federal regulators who claim its software allows landlords to collude on rent.
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Rental data company RealPage reportedly laid off 4% of its workforce this week in the face of mounting legal challenges and a federal investigation into one of the core aspects of its business.
The layoffs include employees at all levels of the organization, according to Bisnow and post on social media, come on RealPage faces a proposed class-action lawsuit and scrutiny from federal regulators who claim the company’s software allows owners to collude on pricing. The company helps many of the country’s largest landlords set optimal rental rates, which regulators say amounts to price manipulation.
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“RealPage is deeply focused on innovation and accelerating business growth in 2024 and beyond, so we have decided to eliminate a handful of positions within the company,” said Jennifer Bowcock, senior vice president of communications and creative at RealPage, in a statement.
“We do not make these decisions lightly, and we are committed to supporting our employees during the transition inside and outside RealPage,” Bowcock added.
a group of renters Raise a legal challenge In October 2022, allegations were made that RealPage was at the center of an illegal “cartel” that began in 2016 to drive up rents at an unprecedented rate. sue the company In November, Arizona Attorney General Kris Mayes File a lawsuit In February.
The lawsuits were filed after The New York Times exposé. News media ProPublicagiving readers an in-depth understanding of how RealPage helps landlords achieve the highest rent allowed by the market.
Used by property managers of buildings owned by America’s largest landlords rental price According to one of the lawsuits, RealPage’s software recommendation rate is approximately 90%. The tenants’ lawsuit claims these practices amount to a monopoly.
RealPage denies wrongdoing and defends its software. The company said landlords are welcome to accept or ignore advice on its rent-setting algorithm, and many landlords often do so. The company says its software recommends rents move in all directions, not just upwards, resulting in what it calls market-driven rental prices.
In a statement shared with Inman, Bowcock denied that the layoffs were related to the ongoing litigation.
“I’ve seen some media coverage of our actions this week related to antitrust issues,” Bowcock said. “I can say that this action has nothing to do with the company’s antitrust litigation.”
Still, federal regulators are keeping a close eye on the company. The U.S. Department of Justice has launched a criminal investigation into the company. Politico report March.
Assistant Attorney General Jonathan Kanter recently suggested New York Times RealPage is “a matter of concern.”
“I always say if your dog bites someone, you are responsible for your dog biting someone,” Kanter told era. “If your artificial intelligence determines prices, you have the same responsibility.”
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