The layoffs embody workers at varied ranges of the corporate and are available as RealPage faces scrutiny from federal regulators, who declare its software program permits landlords to collude on lease.
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Within the face of mounting authorized challenges and a federal investigation into one of many core facets of its enterprise, rental information agency RealPage laid off 4 p.c of its workforce this week, in response to experiences.
The layoffs embody workers at varied 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 most 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 artistic 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 gaggle of renters filed a authorized problem in October 2022 alleging RealPage was on the heart of an unlawful “cartel” that drove up lease at unprecedented charges beginning in 2016. Brian Schwalb, legal professional common 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 have a look at how RealPage helped landlords obtain the very best lease the market would permit.
Property managers for buildings owned by America’s largest landlords used the lease 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 usually do. It stated its software program recommends lease 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 had been associated to the continuing 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 lately advised to The New York Occasions 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 Occasions. “If your A.I. fixes prices, you’re just as responsible.”
