Kabisch v. RealPage Inc
2:24-cv-00373
| W.D. Wash. | Dec 28, 2023Background
- RealPage, Inc. developed software for revenue management (RMS) in the multifamily housing market, integrating algorithms and client pricing data to generate rent recommendations.
- Plaintiffs allege RealPage and its clients (including large property managers and owners) engaged in a conspiracy to fix rental prices using this technology, resulting in artificially high rents.
- Property Management Defendants (PMDs) allegedly contracted with RealPage, paid for, and used RMS software, sharing competitively sensitive data and allegedly agreeing to implement coordinated pricing recommendations.
- The Multifamily Plaintiffs brought antitrust claims, arguing this conduct constituted a horizontal price-fixing cartel among competitors.
- PMDs moved to dismiss, asserting the complaint inadequately alleged their direct participation in the conspiracy or agency-based liability.
- This opinion addresses whether the claims against the PMDs survive a motion to dismiss for failure to plead agency liability and conspiracy.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Sufficiency of conspiracy allegations | PMDs directly participated in the antitrust conspiracy through contracting, sharing data, and implementing pricing recommendations | The complaint uses generic allegations, lacks specifics on PMDs' decisions and roles in the alleged conspiracy | The complaint plausibly alleges direct participation by PMDs and provides sufficient detail |
| Sufficiency of agency liability allegations | PMDs acted as agents, knowing and intending to restrain trade by participating in RMS scheme | Mere software use under contract does not plausibly allege knowledge, intent, or material contribution to conspiracy | Agency liability is plausibly alleged against PMDs under antitrust law |
Key Cases Cited
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (establishing plausibility standard for pleadings under Rule 8(a))
- Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (2007) (complaints must state enough factual matter to suggest a plausible conspiracy)
- Total Benefits Planning Agency, Inc. v. Anthem Blue Cross & Blue Shield, 552 F.3d 430 (6th Cir. 2008) (group or generic pleadings must still provide specifics as to roles in an alleged conspiracy)
- In re Travel Agent Com’n Antitrust Litig., 583 F.3d 896 (6th Cir. 2009) (complaints must specify how defendants are involved in alleged antitrust conspiracies)
- Brown v. Donco Enterprises, Inc., 783 F.2d 644 (6th Cir. 1986) (agents/officers can be liable for corporate antitrust violations if they authorize or participate in the conduct)