Case 2:23-cv-01391-RSL Document 226 Filed 03/05/25 Page 1 of 100
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`The Honorable Robert S. Lasnik
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`UNITED STATES DISTRICT COURT
`FOR THE WESTERN DISTRICT OF WASHINGTON
`AT SEATTLE
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`Case No. 2:23-cv-01391-RSL
`In Re YARDI REVENUE MANAGEMENT
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`ANTITRUST LITIGATION
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`CONSOLIDATED CLASS ACTION
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`COMPLAINT
`MCKENNA DUFFY and MICHAEL BRETT,
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`individually and on behalf of all others similarly
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`JURY TRIAL DEMANDED
`situated,
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`Plaintiffs,
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`v.
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`YARDI SYSTEMS, INC.; A. J. DWOSKIN &
`ASSOCIATES, INC.; AFFINITY PROPERTY
`MANAGEMENT, LLC; APARTMENT
`SERVICES, INC.; ARDMORE
`RESIDENTIAL, INC.; ASSET LIVING, LLC;
`AVENUE5 RESIDENTIAL, LLC;
`BALACIANO GROUP; BALKE BROWN
`TRANSWESTERN, INC.; BANYAN LIVING
`OHIO LLC; BRIDGE PROPERTY
`MANAGEMENT, L.C.; CALIBRATE
`PROPERTY MANAGEMENT, LLC;
`CONCORD MANAGEMENT, LTD.;
`CREEKWOOD PROPERTY CORPORATION;
`DALTON MANAGEMENT, INC.; DWECK
`PROPERTIES, LTD.; EDWARD ROSE &
`SONS; ENVOLVE COMMUNITIES, LLC; FPI
`MANAGEMENT, INC.; GHP
`MANAGEMENT CORPORATION;
`GOODMAN REAL ESTATE, INC.; GRE
`MANAGEMENT, LLC; GREYSTAR
`MANAGEMENT SERVICES, LLC; GRUBB
`PROPERTIES, LLC; GUARDIAN
`MANAGEMENT, LLC; HNN ASSOCIATES,
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`CONSOLIDATED CLASS ACTION COMPLAINT
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`1301 Second Avenue, Suite 2000, Seattle, WA 98101
`(206) 623-7292 OFFICE (206) 623-0594 FAX
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`Case 2:23-cv-01391-RSL Document 226 Filed 03/05/25 Page 2 of 100
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`LLC; KRE GROUP, INC.; LUMACORP, INC.;
`MANCO ABBOTT, INC.; MCWHINNEY
`PROPERTY MANAGEMENT, LLC;
`MORGUARD MANAGEMENT COMPANY
`INC.; OAKLAND MANAGEMENT CORP.
`d/b/a BEZTAK MANAGEMENT COMPANY;
`PRG REAL ESTATE MANAGEMENT, INC.;
`RAM PARTNERS, LLC; R.D. MERRILL
`REAL ESTATE HOLDINGS, LLC; RPM
`LIVING, LLC; SENTINEL REAL ESTATE
`CORPORATION; SINGH MANAGEMENT
`CO., L.L.C.; SOUTHERN MANAGEMENT
`COMPANIES LLC; SUMMIT
`MANAGEMENT SERVICES, INC.; THE
`HABITAT COMPANY LLC; TOWNE
`PROPERTIES ASSET MANAGEMENT
`COMPANY, LTD.; WALTON
`COMMUNITIES, LLC; WESTERN
`NATIONAL SECURITIES d/b/a WESTERN
`NATIONAL PROPERTY MANAGEMENT;
`WILLOW BRIDGE PROPERTY COMPANY
`NATIONAL d/b/a LINCOLN PROPERTY
`COMPANY; WOODWARD MANAGEMENT
`PARTNERS, LLC; and FICTITIOUS
`DEFENDANTS JOHN DOES 1-100,
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`Defendants.
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`CONSOLIDATED CLASS ACTION COMPLAINT
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`1301 Second Avenue, Suite 2000, Seattle, WA 98101
`(206) 623-7292 OFFICE (206) 623-0594 FAX
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`Case 2:23-cv-01391-RSL Document 226 Filed 03/05/25 Page 3 of 100
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`TABLE OF CONTENTS
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`NATURE OF THE ACTION ..............................................................................................1
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`Page
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`PARTIES ...........................................................................................................................20
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`A.
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`B.
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`Plaintiffs .................................................................................................................20
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`Defendants .............................................................................................................20
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`1.
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`2.
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`3.
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`Defendant Yardi Systems, Inc. ..................................................................20
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`Landlord Defendants ..................................................................................20
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`Co-Conspirators and Agents ......................................................................31
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`JURISDICTION AND VENUE ........................................................................................32
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`FACTUAL BACKGROUND ............................................................................................32
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`A.
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`B.
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`C.
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`D.
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`E.
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`F.
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`G.
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`Yardi’s RENTmaximizer is widely used in the national
`multifamily rental market to set lessors’ prices. ....................................................32
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`Yardi and Landlord Defendants conspired to eliminate competition
`by outsourcing independent pricing and supply decisions to
`RENTmaximizer. ...................................................................................................46
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`Yardi collects extensive data from landlords, including confidential
`pricing and occupancy data, that it inputs into its “Yardi Matrix
`Multifamily” product—which is then used to feed
`RENTmaximizer. ...................................................................................................57
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`Economic analysis confirms that usage of Yardi produces
`anticompetitive effects in the form of higher prices for
`RENTmaximizer users. ..........................................................................................66
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`Defendants’ conduct has no pro-competitive benefits ...........................................69
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`Studies show that industry-wide usage of a shared pricing
`algorithm leads to anticompetitive effects. ............................................................70
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`Parallel conduct and “plus factors” indicate an existence of a price-
`fixing conspiracy. ...................................................................................................73
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`1.
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`2.
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`Exchanges of competitively sensitive information ....................................74
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`Actions against economic self-interest. .....................................................75
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`
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`I.
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`II.
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`III.
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`IV.
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`CONSOLIDATED CLASS ACTION COMPLAINT – i
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`1301 Second Avenue, Suite 2000, Seattle, WA 98101
`(206) 623-7292 OFFICE (206) 623-0594 FAX
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`Case 2:23-cv-01391-RSL Document 226 Filed 03/05/25 Page 4 of 100
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`3.
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`4.
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`5.
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`6.
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`7.
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`High barriers to entry .................................................................................75
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`Fungible products subject to inelastic consumer demand. .........................75
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`High switching costs ..................................................................................76
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`Ample opportunities to collude ..................................................................76
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`Related government investigation..............................................................82
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`V.
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`RELEVANT MARKET.....................................................................................................84
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`A.
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`Regional Submarkets .............................................................................................85
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`VI.
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`CLASS ACTION ALLEGATIONS ..................................................................................88
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`VII. CAUSES OF ACTION ......................................................................................................89
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`FIRST CLAIM FOR RELIEF VIOLATION OF SECTION 1 OF THE
`SHERMAN ACT FOR AGREEMENT IN RESTRAINT OF TRADE
`(HUB AND SPOKE CONSPIRACY) 15 U.S.C. § 1 ........................................................89
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`SECOND CLAIM FOR RELIEF VIOLATION OF SECTION 1 OF THE
`SHERMAN ACT FOR AGREEMENT IN RESTRAINT OF TRADE
`(SET OF VERTICAL AGREEMENTS) 15 U.S.C. § 1 ....................................................90
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`THIRD CLAIM FOR RELIEF VIOLATION OF SECTION 1 OF THE
`SHERMAN ACT FOR CONSPIRACY TO EXCHANGE
`COMPETITIVE INFORMATION 15 U.S.C. § 1 .............................................................91
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`REQUEST FOR RELIEF ..............................................................................................................93
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`JURY TRIAL DEMANDED .........................................................................................................94
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`CONSOLIDATED CLASS ACTION COMPLAINT
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`1301 Second Avenue, Suite 2000, Seattle, WA 98101
`(206) 623-7292 OFFICE (206) 623-0594 FAX
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`Plaintiffs Mckenna Duffy and Michael Brett bring this action on behalf of themselves
`individually and on behalf of a class consisting of all persons who leased multifamily residential
`real estate units directly from a defendant or co-conspirator from September 8, 2019, through the
`present, in the nationwide multifamily housing rental market (hereinafter “the multifamily
`market”). Plaintiffs bring this action for treble damages and injunctive relief under Section 1 of
`the Sherman Act. Plaintiffs demand a trial by jury.
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`I.
`NATURE OF THE ACTION
`1.
`Rental prices across America have reached new levels of unaffordability for the
`average American. The U.S. Department of Housing and Urban Development specifically defines
`households as “rent-burdened” if they pay more than 30% of their income for housing. This is
`because households that pay so much of their income for housing may, according to HUD, “have
`difficulties affording necessities such as food, clothing, transportation and medical care.”1
`According to 2023 studies, the average American renter is now cost burdened, with the typical
`renter now paying more than 30% percent of their income for housing.2 This is the first time this
`has occurred in the more than 20 years that Moody’s Analytics has tracked this metric.
`2.
`Unbeknownst to millions of Americans struggling to pay rent, Landlord
`Defendants3 are using a coordinated pricing algorithm administered by Defendant Yardi Systems,
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`1 HUD, “Rental Burdens: Rethinking Affordability Measures” (available at
`https://www.huduser.gov/portal/pdredge/pdr_edge_featd_article_092214.html#:~:text=HUD%20defines%
`20cost%2Dburdened%20families,of%20one's%20income%20on%20rent) (last visited Nov. 3, 2023).
`2 The Hill, “The Average American tenant is rent-burdened. Here’s what that means for the Economy,”
`February 21, 2023 (available at https://thehill.com/changing-america/sustainability/infrastructure/3866947-
`renters-paying-30-percent-of-income-for-housing-crisis/).
`3 Defendants A. J. Dwoskin & Associates, Inc.; Affinity Property Management, LLC; Apartment
`Services, Inc.; Ardmore Residential, Inc.; Asset Living, LLC; Avenue5 Residential, LLC; Balaciano
`Group; Balke Brown Transwestern, Inc.; Banyan Living Ohio LLC; Bridge Property Management, L.C.;
`Calibrate Property Management, LLC; Concord Management, Ltd.; Creekwood Property Corporation;
`Dalton Management, Inc.; Dweck Properties, Ltd.; Edward Rose & Sons; Envolve Communities, LLC;
`FPI Management, Inc.; GHP Management Corporation; Goodman Real Estate, Inc.; GRE Management,
`LLC; Greystar Management Services, LLC; Grubb Properties, LLC; Guardian Management, LLC; HNN
`Associates, LLC; Kre Group, Inc.; LumaCorp, Inc.; Manco Abbott, Inc.; McWhinney Property
`Management, LLC; Morguard Management Company Inc.; Oakland Management Corp. D/B/A Beztak
`Management Company; PRG Real Estate Management, Inc.; Ram Partners, LLC; R.D. Merrill Real Estate
`Holdings, LLC; Rpm Living, LLC; Sentinel Real Estate Corporation; Singh Management Co., L.L.C.;
`Southern Management Companies LLC; Summit Management Services, Inc.; The Habitat Company LLC;
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`CONSOLIDATED CLASS ACTION COMPLAINT – 1
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`1301 Second Avenue, Suite 2000, Seattle, WA 98101
`(206) 623-7292 OFFICE (206) 623-0594 FAX
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`Inc. (“Yardi”), a property management software company, that is specifically designed to inflate
`rental prices. Indeed, the artificial price inflation is in the very name of the algorithm:
`“RENTmaximizer.”4 For more than a decade, Yardi has repeatedly touted the ability of the
`algorithm to generate supracompetitive pricing, emphasizing how Defendant Landlords that use
`“RENTmaximizer” are able to increase rents faster than comparable properties. Plaintiffs
`challenge this conspiracy among Landlord Defendants and Yardi that has led to ordinary
`Americans being overcharged on rental prices that they pay across the nation.
`3.
`Landlord Defendants manage multifamily rental properties across the United
`States. In a competitive market, these companies would compete on rental prices to attract
`renters—that is, they would set rents in accordance with the fundamentals of supply and demand.
`When demand surges, rents may go up. When demand falls, property management companies
`normally prioritize occupancy rates, and thus increase concessions (e.g., offering a first month
`free) to attract renters.
`4.
`In the absence of knowledge about competitors’ pricing strategies, property
`managers can only make their best educated guesses and set their prices at optimal positions—
`usually a bit lower than what is offered by competitors—to attract renters in the market. If a lessor
`wants to take a chance to raise rents regardless of market conditions, other competitors will soon
`take that lessor’s business away by listing their units at competitive prices.
`5.
`Yardi, together with the Landlord Defendants, has unlawfully solved this problem
`with a product originally called “RENTmaximizer.” Launched in 2011, RENTmaximizer is an
`algorithmic pricing tool marketed to lessors that is intended to “automate” lessors’ “rental pricing
`process” and thus help “multifamily property managers maximize rental income” by
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`Towne Properties Asset Management Company, Ltd.; Walton Communities, LLC; Western National
`Securities D/B/A Western National Property Management; Willow Bridge Property Company National
`D/B/A Lincoln Property Company; and Woodward Management Partners, LLC, collectively, are the
`“Landlord Defendants,” and together with Defendant Yardi Systems, Inc., the “Defendants.”
`4 Yardi’s website indicates that “RENTmaximizer” has been renamed “Revenue IQ.” See “Revenue
`IQ,” https://www.yardi.com/products/yardi-revenue-iq/. The domain
`https://www.yardi.com/rentmaximizer redirects users to the “Revenue IQ” page, which describes Revenue
`IQ as substantially similar to RENTmaximizer. All references herein to “RENTmaximizer” in this
`complaint also include by reference Revenue IQ.
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`CONSOLIDATED CLASS ACTION COMPLAINT – 2
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`1301 Second Avenue, Suite 2000, Seattle, WA 98101
`(206) 623-7292 OFFICE (206) 623-0594 FAX
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`Case 2:23-cv-01391-RSL Document 226 Filed 03/05/25 Page 7 of 100
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`“increasing . . . revenue by 3 to 6 percent”5—that is, RENTmaximizer effectively outsources the
`management of rental pricing from a landlord to Yardi itself, which then implements higher prices
`collectively across a group of landlords. According to Terri Dowen, Yardi’s senior vice president
`of sales, “[b]y automating rental pricing that factors in portfolio and market data,
`RENTmaximizer not only improves rental income while maintaining occupancy, it simplifies the
`process by eliminating rent rate guesswork and traditional sales devices such as concessions and
`specials.”6
`6.
`In other words, Yardi’s RENTmaximizer is specifically, and publicly, marketed as
`a means to eliminate the discounting that would occur in a competitive market. Landlord
`Defendants who agree to use RENTmaximizer understand that its purpose is to foil the operation
`of the competitive market. Indeed, in marketing materials, Yardi advertises that “revenue grows
`on Yardi”7 and that Yardi users “beat the market by a minimum of 2%” and “gain[] on average
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`5 See Yardi Adds Two Revenue Management Experts to its Yardi RENTmaximizer Team, Business Wire
`(June 22, 2011), available at https://www.businesswire.com/news/home/20110622006700/en/Yardi-Adds-
`Two-Revenue-Management-Experts-to-its-Yardi-RENTmaximizer-Team.
`6 The Rockbridge Group Increases Rent Revenue with Yardi RENTmaximizer, Business Wire (June 21,
`2016), https://www.businesswire.com/news/home/20160621005024/en/Rockbridge-Group-Increases-Rent-
`Revenue-Yardi-RENTmaximizer.
`7 Yardi, Revenue Grows on Yardi: RENTmaximizer (video) (June 19, 2017),
`https://www.facebook.com/Yardi/videos/revenue-grows-on-yardi-rentmaximizer/1501017369961971/.
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`CONSOLIDATED CLASS ACTION COMPLAINT – 3
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`1301 Second Avenue, Suite 2000, Seattle, WA 98101
`(206) 623-7292 OFFICE (206) 623-0594 FAX
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`Case 2:23-cv-01391-RSL Document 226 Filed 03/05/25 Page 8 of 100
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`more than 6% net rental income.”8 Yardi even tells its users: “You manage your business, we
`manage your pricing”:
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`7.
`Marketing materials for Yardi’s “Revenue IQ” product—which, on information
`and belief, is a rebranded version of RENTmaximizer—echo the same theme, boasting that
`lessors can use Yardi’s pricing software to “[w]in at pricing” and “[c]onsistently beat the
`market”9:
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`8 Yardi, Yardi Multifamily Suite (2019), available at https://resources.yardi.com/documents/
`multifamily-suite-brochure/.
`9 Yardi, Revenue IQ, https://www.yardielevate.com/multifamily/revenue-iq/ (last visited Sept. 7, 2023).
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`CONSOLIDATED CLASS ACTION COMPLAINT – 4
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`1301 Second Avenue, Suite 2000, Seattle, WA 98101
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`Case 2:23-cv-01391-RSL Document 226 Filed 03/05/25 Page 9 of 100
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`8.
`According to Yardi’s publicly available promotional materials, a key input to
`Yardi’s pricing algorithm, or “engine,” is competitor pricing data. Specifically, RENTmaximizer
`asks users to input their data, such as rental rates and occupancy, into its system; meanwhile, the
`system automatically incorporates market-specific information on “comparative rent” to, in
`Yardi’s words, give users “accurate and timely information regarding your market—including
`every comp and how you compete”10—or what it also calls “complete visibility,” including
`“performance benchmarking” “compared to the market, submarket, and competition”:
`
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`9.
`Yardi specifically markets to potential users that Yardi RENTmaximizer /
`RevenueIQ provides extensive data on competitors’ pricing that users can then use to maximize
`their own rental prices. For example, in one non-public 2023 presentation provided to a potential
`customer, Yardi touted that through RevenueIQ, “your operations team gains holistic revenue
`
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`10 Yardi Systems, Inc., Yardi Elevate (2020), available at https://resources.yardi.com/documents/
`elevate-suite-for-multifamily-brochure/.
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`CONSOLIDATED CLASS ACTION COMPLAINT – 5
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`Case 2:23-cv-01391-RSL Document 226 Filed 03/05/25 Page 10 of 100
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`intelligence from rental rates and occupancy to property performance benchmarks compared to
`the market, submarket, and competition.”
`10.
`RevenueIQ includes extensive benchmarking data that is collected from Yardi
`property management clients and then made available to RevenueIQ users in aggregated fashion.
`Through RevenueIQ, users obtain data on other specific properties that are similar in terms of
`location, quality, or property characteristics. Comparable properties may be either suggested by
`Yardi or selected by the user. The Revenue IQ user identifies a total of at least ten properties. At
`that point, the data from those competitor properties is presented in aggregated fashion to the
`Revenue IQ user. As stated in Yardi’s own interrogatory responses in this litigation, the
`benchmarking data that is presented to Revenue IQ users includes “actual leasing, operational,
`and financial data from Yardi property management clients.” Yardi acknowledges that the
`benchmarking data is used by Revenue IQ clients to understand how their properties “are
`performing financially and operationally as compared to comparable properties.” In short,
`Revenue IQ provides to users extensive confidential data from competitor properties alongside
`the pricing recommendations that Revenue IQ formulates. Notably, Yardi’s own interrogatory
`responses specify that this benchmarking information provided through Revenue IQ, based on
`confidential data from Yardi clients, “bears no relation” to the pricing surveys that Yardi also
`conducts and makes available for usage in Revenue IQ. Yardi’s Revenue IQ, therefore,
`incorporates and provides to users multiple types of competitor data: (1) confidential
`“benchmarking” information collected from Yardi users and (2) pricing information that Yardi
`meticulously collects through regular market surveys.
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`CONSOLIDATED CLASS ACTION COMPLAINT – 6
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`Case 2:23-cv-01391-RSL Document 226 Filed 03/05/25 Page 11 of 100
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`11.
`Yardi also operates Yardi Matrix, a commercial real estate intelligence source.
`Yardi Matrix actively collects data from Defendants and other multifamily operators related to
`rental prices at multifamily properties across the entire nation. Subscribers to Yardi Matrix
`receive rental price information, as well as other data such as short and long-range forecasts of
`rent and occupancy at the market and sub-market levels. Yardi’s own interrogatory responses
`state that, “as of August 7, 2024, Yardi Matrix maintains property profiles for approximately
`120,301 properties and 22,543,728 units. Yardi publicly advertises the extensive amount of data
`available through Yardi Matrix:
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`CONSOLIDATED CLASS ACTION COMPLAINT – 7
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`Case 2:23-cv-01391-RSL Document 226 Filed 03/05/25 Page 12 of 100
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`12.
`Yardi Matrix also conducts “rent surveys” multiple times annually to collect
`current pricing information about rental properties. As part of the rent survey, Yardi employees,
`masquerading as potential renters, call apartment community building to collect information
`about rents and current rent specials. Yardi itself has acknowledged that information Yardi
`collects from rent surveys is used in RENTmaximizer, stating that asking rent adjustments in
`RENTmaximizer are based, in part, on “public information collected through surveys.” Yardi’s
`public marketing for Matrix explicitly states that Matrix data is incorporated into
`RENTmaximizer.
`
`13.
`Yardi’s own interrogatory responses confirm the extensive, regular market surveys
`that Yardi conducts and then provides for usage in Revenue IQ. Yardi’s interrogatory responses
`state that “Yardi endeavors to collect asking rents for all apartment communities for which
`profiles have been established three times annually during a six-week period in January/February,
`May/June and September/October. These are referred to by Yardi as ‘benchmark’ surveys.”
`Yardi’s interrogatory responses also describe additional surveys that Yardi conducts on a monthly
`basis, stating that “Stratified surveys are conducted monthly on a sample subset of properties in
`various markets, presently consisting of approximately 12,000 to 13,500 properties. Stratified
`surveys typically take place over the course of five to eight days during the second week of each
`month. The purpose of stratified rent surveys is to identify market trends during intervals between
`the benchmark surveys.” And, Yardi also states that it “conducts ad hoc surveys from time to time
`to obtain information” related to property characteristics and current rents. The surveys collect
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`CONSOLIDATED CLASS ACTION COMPLAINT – 8
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`1301 Second Avenue, Suite 2000, Seattle, WA 98101
`(206) 623-7292 OFFICE (206) 623-0594 FAX
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`Case 2:23-cv-01391-RSL Document 226 Filed 03/05/25 Page 13 of 100
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`extensive information including asking rents, whether and what types of specials are offered, non-
`rent specials, and lease term offerings.
`14.
`Defendants provide information to Yardi Matrix with the understanding that, in
`part, they will receive pricing recommendations from RENTmaximizer that are based on Yardi
`Matrix data. CW 6, a former Yardi employee, stated that all Yardi clients— or Voyager clients—
`contractually agree to share pricing and occupancy data with Yardi and to allow Yardi to use
`“aggregated data” as part of Matrix and RENTmaximizer. CW 6 stated that “when you sign your
`contract with them, you agree to give your data, aggregated.” CW 6 stated that Yardi has “all the
`data from all of their properties inside Matrix” and that “somebody then buys that data in the form
`of RENTmaximizer.” Similarly, CW 7, who worked at Yardi between 2019 and 2021 as a senior
`account executive, explained that while Yardi’s clients were “very concerned about sharing their
`rental rates more than anything,” “[m]ost people appreciated the fact that if they shared data, they
`would get data from other clients using things like RENTmaximizer, so that everybody was
`benefitting from the data.” And Yardi’s own interrogatory responses state that “a landlord
`defendant using Revenue IQ may choose to use rents obtained by Matrix, as a source of data for
`its Revenue IQ comp trend, then the Matrix survey data for the chosen comp properties and
`floorplans are used in the average comp rent calculation.”
`15.
`Yardi’s standard contractual agreement with Revenue IQ users provides Yardi
`with broad contractual rights to use the data of Revenue IQ users. In particular, the standard
`services agreement states that “Client acknowledges and agrees that Yardi may aggregate,
`compile, use, and disclose Client data provided to Yardi as part of the Services in order to
`improve, develop or enhance the Services; provided that no Client data is identifiable as
`originating from, or can be traced back to, Client or a Client customer in such aggregated form.”
`The services agreement also makes clear the importance of users providing data to Yardi, stating
`that “Client agrees to provide current and relevant data to Yardi regarding the
`properties/units/items for which Yardi provides Services. Client acknowledges that such data is
`necessary to Yardi’s provision of the Services.” Yardi’s own interrogatory responses confirm that
`this language giving Yardi broad access to the data of Revenue IQ users has been present
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`CONSOLIDATED CLASS ACTION COMPLAINT – 9
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`1301 Second Avenue, Suite 2000, Seattle, WA 98101
`(206) 623-7292 OFFICE (206) 623-0594 FAX
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`Case 2:23-cv-01391-RSL Document 226 Filed 03/05/25 Page 14 of 100
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`throughout the relevant period, with Yardi stating that “Yardi is not aware of any contractual
`language pertaining to the use or non-use of aggregated data that might apply to Yardi customers
`using Revenue IQ during the Relevant Time Period that differs from the language in the templates
`already produced to Plaintiffs.” And Yardi also stated that it is not aware of any user of Revenue
`IQ that has not agreed to this contractual language.
`16.
`Leveraging data gathered from RENTmaximizer users as well as comparative rent,
`RENTmaximizer’s rental pricing algorithm then calculates a “rent recommendation” that users
`can—and are encouraged to—automatically adopt. These prices are updated “daily.” Yardi also
`advertises (as noted above) that it gives lessors “complete visibility” into the market, providing
`them with “property performance benchmarking (compared to the market, submarket and
`competition)”11:
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`17.
`Furthermore, Yardi provides RENTmaximizer users “with a dedicated revenue
`manager” who works closely with individual lessors to hone their usage of RENTmaximizer by
`“get[ting] to know your business processes, assets, and goals to provide superior support and . . .
`work[ing] with you to maximize your returns.”12 Promotional materials for Yardi’s “Revenue IQ”
`product similarly advertise the assistance of “dedicated Yardi expert[s]” who “help manage
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`11 Id. Similar promotional materials for Yardi Revenue IQ state: “Get visibility into rent movement and
`operational performance. Know your market in real time — including every comp and how you compete.
`Daily management reports help you understand pricing changes and show you upcoming exposure along
`with traffic and trends. Provide extensive revenue intelligence for your operations team and give your
`managers confidence in the rental prices they offer. With this transparent system you’ll see: Rental rates
`and occupancy data; Pricing options for prospects and residents; Property performance benchmarking
`(compared to the market, submarket and competition).” See Yardi Systems, Inc., Revenue IQ,
`https://www.yardi.com/products/yardi-revenue-iq/ (emphasis added) (last visited Sept. 7, 2023).
`12 Yardi Elevate, supra note 10.
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`CONSOLIDATED CLASS ACTION COMPLAINT – 10
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`1301 Second Avenue, Suite 2000, Seattle, WA 98101
`(206) 623-7292 OFFICE (206) 623-0594 FAX
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`Case 2:23-cv-01391-RSL Document 226 Filed 03/05/25 Page 15 of 100
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`pricing” and assist lessors in “[g]et[ting] pricing recommendations and control[ling] pricing at the
`property level”13:
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`18.
`Yardi emphasizes to prospective clients that Yardi’s RENTmaximizer/Revenue IQ
`project will manage pricing for clients who purchase the software. For example, in one non-public
`2023 presentation to a prospective client, Yardi stated, “[y]ou manage your business; we manage
`pricing,” while emphasizing at the same time the availability of a “dedicated, experienced revenue
`manager” who would work with the client along with the software.
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`19.
`Revenue managers employed by Yardi help further Landlord Defendants’
`coordination by facilitating their implementation of the common pricing scheme produced by
`usage of RENTmaximizer. In particular, Yardi’s revenue managers give Landlord Defendants
`“confidence” in their decisions to charge inflated prices. As Adam Goldfarb, vice president for
`lessor Manco Abbott, stated in a 2015 press release, “Having a dedicated revenue manager
`working with us from the Yardi RENTmaximizer team is a huge benefit. If our staff or property
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`13 See Revenue IQ, supra note 9.
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`CONSOLIDATED CLASS ACTION COMPLAINT – 11
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`1301 Second Avenue, Suite 2000, Seattle, WA 98101
`(206) 623-7292 OFFICE (206) 623-0594 FAX
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`Case 2:23-cv-01391-RSL Document 226 Filed 03/05/25 Page 16 of 100
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`owners question any of our rates, we have our Yardi RENTmaximizer expert who can dig deeper
`to support our pricing—and that gives our organization and clients great confidence.”14
`20.
`The result of this scheme is that Landlord Defendants outsource their once-
`independent pricing and supply decisions to a single decisionmaker, RENTmaximizer, and need
`not directly disclose their pricing strategies to each other in order to fix rent prices. Instead,
`Landlord Defendants collectively adopt a coordinated pricing strategy implemented and enforced
`by Yardi’s RENTmaximizer product. Defendants further understand that the pricing data they
`provide to Yardi is used to power the supracompetitive pricing adjustments that Yardi’s
`RENTmaximizer provides to their competitors. Yardi also publicly markets the housing operators
`who have adopted RENTmaximizer and publicizes that usage of RENTmaximizer allows housing
`operators to charge supracompetitive prices.
`21.
`The Federal Trade Commission and Department of Justice’s “Antitrust Guidelines
`for Collaborations Among Competitors” emphasize that “[o]ther things being equal, the sharing
`of information relating to price, output, costs, or strategic planning is more likely to raise
`competitive concern than the sharing of information relating to less competitively sensitive
`variables. Similarly, other things be