On January 24, 2011, Yardi filed a lawsuit in federal court in Los Angeles against RealPage and DC Consulting (formerly known as Evergreen Solutions). The lawsuit alleges that RealPage and Evergreen Solutions improperly accessed and downloaded documentation and other proprietary information from Yardi’s password protected support website, Client Central, using log-in credentials of Yardi customers, Yardi consultants and Yardi employees.

On March 28, 2011 RealPage responded by counter-suing Yardi primarily for alleged restraint of trade under the Sherman Act and interference with RealPage customer relationships, and also for alleged misappropriation of RealPage trade secrets relating to RealPage’s alleged Cloud Computing service. In its response, RealPage admitted to the downloading of Yardi proprietary information using Yardi consultant, client and employee passwords.

In response to a series of flaws Yardi’s legal team identified in the RealPage counter-suit, RealPage rewrote its response and filed it a second time, on May 20, 2011.

The revisions did not cure the legal flaws, so on June 16, 2011 Yardi responded to RealPage’s counter-claim by filing a motion to dismiss all claims except RealPage’s trade secret claim against Yardi. At that time, Yardi stated that in the course of time it would show the trade secret claim to be false.

On July 11, 2011 RealPage filed its opposition to Yardi’s motion to dismiss. In this filing RealPage argued that the Court should not dismiss its antitrust or customer interference claims, while acknowledging “Yardi’s Voyager software is the leading software in the Property Management Software Market.”

On August 11, 2011 the Court granted (upheld) Yardi’s Motion to Dismiss RealPage’s antitrust and customer interference claims. The Court order denied the UCL claim and gave Realpage a second opportunity to amend their complaint.

Court filings and summary briefs can be downloaded from the following table. Summary Full Filing 24 Jan 2011 Yardi files Complaint 28 Mar 2011 RealPage files Response & Counter Claim 20 May 2011 RealPage Amends Counter Claim based on Yardi Meet & Confer 16 Jun 2011 Yardi files Motion to Dismiss RealPage Counter Claims 11 Jul 2011 RealPage files Opposition to Yardi Motion to Dismiss 11 Aug 2011 Court Order on the Motion to Dismiss