Yardi Systems, a property management software developer, has been accused in a class action lawsuit of facilitating a nationwide rent price-fixing scheme. The plaintiffs, Daniel Frank and Lakshmi Nagireddi, allege that Yardi's "RENTmaximizer" service allowed landlords to collude on rental prices for mid-range and high-end apartments.
The suit also names Greystar Real Estate Partners, Lincoln Property Company, Asset Living, Cushman & Wakefield, FPI Management, RPM Living, Apartment Management Consultants LLC, BH Management Services, WinnCompanies, Avenue5 Residential, 10 Federal Companies, Balaciano Group and RAM Partners as defendants. These companies are alleged to have participated in the scheme by providing their pricing data to Yardi and agreeing not to compete on price.
The complaint alleges that the use of Yardi's service resulted in rental rates being increased by at least 6% above what they would be if the landlords were competing instead of colluding. The plaintiffs claim that Yardi guaranteed landlords that their revenues would increase by at least 6% if they joined the conspiracy.
The case was filed in the U.S. District Court for the Central District of California.
Plaintiffs are represented by attorneys Leiv Blad, Jeffrey Blumenfeld and Meg Slachetka, of Competition Law Partners, of Washington, D.C., and Don Bivens and Teresita Mercado, of Bivens Law PLLC, of Scottsdale, Arizona.