Residential Real Estate Cases to Watch in 2025

Ken Racowski, co-head of the firm's Antitrust Team, was quoted in a Law360 article discussing the U.S. Department of Justice's (DOJ) intensified scrutiny of algorithmic pricing tools, particularly in the residential rental market. The DOJ has filed briefs in multiple cases, arguing that price-setting through algorithms, if conducted collaboratively as done in person, violates antitrust laws. Mr. Racowski commented on the case Gibson v. Cendyn Group LLC, which is pending in the U.S. Court of Appeals for the Ninth Circuit. If the ruling in Gibson is upheld, it could impose a higher burden on plaintiffs to provide detailed evidence, such as insider information or specific company documents, to support claims of antitrust violations. Mr. Racowski identified this development as a significant frontier in antitrust litigation, emphasizing that the outcome will have substantial implications for the broader real estate industry's use of algorithms and other pricing software.

"The divide between opinions is whether it's enough that competitors are giving software confidential information, or if plaintiffs have to say something about what is happening after the confidential information is shared," Mr. Racowski said.

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