Owner of Rochester Apartment Complexes Agrees to $7 Million Settlement in Price Fixing Lawsuit

St. Paul, MN (KROC-AM News)- The nation’s largest property management company that owns and rents units at three apartment complexes in Rochester has been ordered to pay a multi-million dollar settlement. 

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That’s according to a news release issued by the Minnesota Attorney General’s Office. The lawsuit alleges a nationwide scheme that violated economic competition laws.

The settlement stems from a multi-state, bipartisan lawsuit against a Texas-based software company. 

Nation's Largest Property Rental Company to Pay $7 Million in Alleged Anit-Trust Pricing Scheme

Greystar Management Services, which owns and operates the Rosewater, Berkman and Lodge at Overland apartments in Rochester and thousands of other properties in Minnesota, has been ordered to pay a $7 million settlement. 

The lawsuit alleges that rental software company RealPage collected “competitively sensitive information,” such as apartment rental pricing and lease terms, from Greystar and its competitors to use in a pricing algorithm. 

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The algorithm would then produce pricing recommendations for Greystar and other companies using rival’s information, the news release says. 

The attorneys general also allege that Greystar and its competitors directly discussed pricing strategies, rents, and selected the parameters for RealPage’s software together. 

Minnesota Attorney General Keith Ellison and the other attorneys general on the suit call the actions of Greystar, RealPage and the other companies involved an “unlawful scheme to decrease competition in rental markets to the detriment of consumers.” 

Minnesota’s share of the settlement is about $483,000. The news release does not say what the settlement dollars will be used for. 

North Carolina, California, Colorado, Connecticut, Illinois, Massachusetts, Oregon, and Tennessee are also attached to the lawsuit.