RealPage Lays Off 4% Of Workforce Amid Ongoing Lawsuits And Probe
The layoffs embrace staff 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.
At Inman Connect Las Vegas, July 30-Aug. 1, 2024, the noise and misinformation shall be banished, all of your huge questions shall be answered, and new enterprise alternatives shall be revealed. Join us.
Within the face of mounting authorized challenges and a federal investigation into one of many core features of its enterprise, rental information agency RealPage laid off 4 p.c of its workforce this week, based on reviews.
The layoffs embrace staff at varied ranges inside the group, according 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 homeowners to collude on pricing. The corporate helps most of the nation’s largest landlords set optimum rental charges, which regulators have stated amounts to price-fixing.
TAKE THE INMAN INTEL INDEX SURVEY FOR JUNE
“RealPage is hyper targeted on innovation and accelerating its enterprise development in 2024 and past, and because of this has made the choice to eradicate a small variety of roles inside the firm,” Jennifer Bowcock, senior vice chairman of communications and artistic at RealPage, stated in a press release.
“We didn’t make these choices calmly, and we’re dedicated to supporting our staff throughout this transition inside and out of doors of RealPage,” Bowcock added.
A gaggle of renters filed a legal challenge 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 basic of Washington D.C., sued the company in November, and Arizona Legal professional Normal Kris Mayes filed suit in February.
These lawsuits adopted an exposé within the news outlet ProPublica, which gave readers an in-depth take a look at how RealPage helped landlords obtain the best lease the market would permit.
Property managers for buildings owned by America’s largest landlords used the rent prices RealPage’s software program advisable about 90 p.c of the time, based on 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 simply accept or ignore the recommendation of its rent-setting algorithm, and that many typically do. It stated its software program recommends lease modifications in all instructions, and never simply up, leading to what it says are market-driven rental costs.
In a press release shared with Inman, Bowcock denied that the layoffs have been associated to the continuing litigation.
“I’ve seen some media reporting on our actions this week as linked to the antitrust issues,” Bowcock stated. “I can say there isn’t any reference to this motion and the corporate’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 Normal Jonathan Kanter has just lately suggested to The New York Instances that RealPage was “a priority.”
“I typically say that in case your canine bites any person, you’re chargeable for your canine biting any person,” Kanter advised The Instances. “In case your A.I. fixes costs, you’re simply as accountable.”
