Cushman & Wakefield (NYSE: CWK) is pushing back on charges by the US Department of Justice (DOJ) that it has engaged with other companies in conspiring to jack up rents through the use of the RealPage software, arguing it is not a landlord and is not in the business of setting rents.
In a letter to its investors, the company took the DOJ to task for including the company in an amended lawsuit that originally charged RealPage with antitrust violations.
“You may have seen press coverage about the US Department of Justice adding Cushman & Wakefield and Pinnacle Property Management to a civil lawsuit that it and several states have filed against RealPage, Inc., in relation to its revenue management software,” said the letter. “The lawsuit seeks primarily injunctive relief – not monetary fines or penalties. We do not expect this matter to have a material impact to our financial condition or operating results.”
“The DOJ and its co-plaintiffs are seeking an order limiting behaviors they allege to be anticompetitive, including related to the use of revenue management software,” the company added. “We disagree with the allegations, do not believe that the use of revenue management software violates antitrust laws, and are not engaged in any of the behaviors the DOJ seeks to enjoin. In addition, C&W is not a landlord. It does not own any properties, set strategy, pricing, or occupancy targets, or determine whether or how revenue management software is used.”
