DOJ sues 6 major landlords, including some with MN properties

DOJ says companies schemed to keep rent high

The U.S. Department of Justice is accusing major property management companies of conspiring to keep rent prices high with anti-competitive practices. FOX 9's Mike Manzoni has the full story.

MINNEAPOLIS (FOX 9) - The Justice Department on Tuesday announced a lawsuit against six of the nation’s largest landlords, arguing that they schemed to drive up rent by using anti-competitive pricing algorithms and sharing information with each other.

Justice Department: Landlords' scheme "harms millions of American renters"

The backstory:

The lawsuit named Camden, LivCor, Greystar, Cushman & Wakefield, Willow Bridge and Cortland as defendants. The latter four companies have a footprint in the Twin Cities metro. Minnesota Attorney General Keith Ellison is one of 10 attorneys general to join the lawsuit as a co-plaintiff.

"The idea is that landlords are conspiring to keep rents high for renters rather than allowing the market to normally set them to a rate that’s reasonable," said Julia Zwak, an attorney at Mid-Minnesota Legal Aid. "They’re getting information that normally competitors in the market wouldn’t be sharing with one another."

Federal lawsuit comes as Minnesota grapples with housing crisis

What they're saying:

"We have definitely seen the rental prices just skyrocketing, both in the metro as well as across the country," Zwak said.

"These companies are using documented tools to enrich themselves," said State Rep. Mike Howard, DFL of Richfield. "I have worked to draft a bill that would ban algorithmic price fixing here in the State of Minnesota."

Landlords sued by Justice Department respond

What they're saying:

In a statement on Tuesday, Greystar, which operates nearly 30 apartment complexes in the metro, said, in part: "Greystar has and will conduct its business with the utmost integrity. At no time did Greystar engage in any anti-competitive practices. We will vigorously defend ourselves in this lawsuit."

Cortland agreed to settle with the federal government and stop using the pricing algorithms, the Justice Department said.

In a statement on Wednesday, Cortland said, in part: "Cortland is pleased to announce the U.S. Department of Justice filed a proposed settlement that would resolve the Antitrust Division’s civil investigation into Cortland related to antitrust violations in the multifamily housing industry."

Crime and Public Safety Minneapolis