RealPage Lays Off 4% Of Workforce Amid Ongoing Lawsuits And Probe

RealPage Lays Off 4% Of Workforce Amid Ongoing Lawsuits And Probe

The layoffs incorporate workers at several concentrations of the enterprise and appear as RealPage faces scrutiny from federal regulators, who claim its software package makes it possible for landlords to collude on rent.

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In the experience of mounting legal problems and a federal investigation into just one of the main features of its enterprise, rental facts company RealPage laid off 4 % of its workforce this week, according to stories.

The layoffs involve staff members at a variety of concentrations inside the business, according to Bisnow and posts on social media, and arrive as RealPage faces proposed course-action lawsuits and scrutiny from federal regulators, who claim the company’s program permits house proprietors to collude on pricing. The corporation allows several of the country’s largest landlords set best rental charges, which regulators have reported quantities to value-fixing.

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“RealPage is hyper targeted on innovation and accelerating its business enterprise advancement in 2024 and past, and as a consequence has manufactured the determination to get rid of a modest selection of roles in the business,” Jennifer Bowcock, senior vice president of communications and innovative at RealPage, mentioned in a assertion. 

“We didn’t make these selections lightly, and we are fully commited to supporting our personnel in the course of this changeover inside of and outdoors of RealPage,” Bowcock included.

A group of renters submitted a legal obstacle in October 2022 alleging RealPage was at the centre of an illegal “cartel” that drove up hire at unparalleled fees commencing in 2016. Brian Schwalb, legal professional normal of Washington D.C., sued the firm in November, and Arizona Lawyer Standard Kris Mayes submitted fit in February. 

All those lawsuits followed an exposé in the information outlet ProPublica, which gave audience an in-depth appear at how RealPage assisted landlords achieve the best rent the market place would make it possible for.

Residence professionals for structures owned by America’s greatest landlords applied the lease charges RealPage’s software suggested about 90 % of the time, in accordance to one of the lawsuits. The procedures amounted to a monopoly, the renters’ fit alleged.

RealPage has denied wrongdoing and defended its program. It has said landlords are welcome to settle for or dismiss the guidance of its rent-placing algorithm, and that many generally do. It claimed its software program recommends lease changes in all directions, and not just up, ensuing in what it says are current market-driven rental costs. 

In a statement shared with Inman, Bowcock denied that the layoffs were similar to the ongoing litigation.

“I’ve found some media reporting on our actions this 7 days as connected to the antitrust matters,” Bowcock said. “I can say there is no link with this motion and the company’s antitrust lawsuit.”

Even now, federal regulators are retaining an eye on the company. The U.S. Office of Justice has opened a criminal investigation into the organization, Politico noted in March.

Assistant Attorney Typical Jonathan Kanter has just lately instructed to The New York Instances that RealPage was “a worry.”

“I frequently say that if your doggy bites any person, you are accountable for your doggy biting somebody,” Kanter explained to The Instances. “If your A.I. fixes charges, you’re just as accountable.” 

E mail Taylor Anderson





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