(Mary Louis, et al. v. SafeRent Solutions, LLC, et al., No. 22-10800, D. Mass.)
(Judgment available. Document #46-241211-024R. Order granting attorney fees and costs available. Document #46-241211-025R. Final approval order available. Document #46-241211-026R.)
U.S. Judge Angel Kelley of the District of Massachusetts granted the motion for final approval on Nov. 20.
Mary Louis and Monica Douglas filed a class action claiming they were denied tenancy of an apartment after SafeRent Solutions LLC’s AI screening tool flagged her application. They alleged that the tool improperly weighted nontenancy debt, which they claimed is not predictive of an applicant’s ability to pay rent. The plaintiffs claimed that as a result the AI disproportionately denied applications for individuals using housing choice vouchers and therefore was largely applied to Black and Hispanic applicants. They alleged that the housing voucher provides landlords with unique rent payment protections and that there was therefore no business reason for the disparate impact.
AI Claims
The complaint asserts claims for violation of the Fair Housing Act, 42 U.S.C. § 3604 et seq., and Massachusetts General Law Chapter 151B § 4(6) and 4(10), Mass. Gen. L. ch. 151B §4(6) and 4(10), and unfair and deceptive business practices under Massachusetts General Laws Chapter 93A § 9, Mass G L. ch. 93A § 9.
In October 2022 SafeRent moved for summary judgment. The court denied the motion as to the discrimination-related claims but dismissed the Chapter 93A claim. In the wake of the ruling the parties participated in mediation and in December 2023 reached a settlement agreement. In March, the plaintiffs filed an unopposed motion to certify class and class notice, which the court granted the following month.
The plaintiffs filed an unopposed motion for certification of the class and final approval of the settlement on Nov. 8. The plaintiffs said the settlement provides for substantial injunctive relief imposing changes to business practices that will resolve the issues behind the litigation. That includes SafeRent ceasing the use of the SafeRent Score for housing providers who use the Affordable Model or any other tenant screening score unless the scoring is approved for use with housing vouchers by the National Fair Housing Alliance or similar organization, the plaintiffs said.
Secondly, SafeRent will ensure that housing providers who use the company’s other two models certify that they are not using the programs to screen applicants using publicly funded federal or state housing vouchers, the plaintiffs said.
Award
Finally, SafeRent will train housing providers on the difference among the three models and explaining the changes resulting from the litigation and why housing providers will not receive a SafeRent Score when screening applicants with housing vouchers.
The agreement also calls SafeRent to pay $1,750,000 into a settlement fund used to pay class members, the plaintiffs said. Class representatives will be awarded up to $20,000. The agreement also calls for attorney fees and costs not to exceed $1,100,000. The settlement is not conditioned on the award of attorney fees and any money remaining from the $1,100,000 would be paid into the settlement fund. The plaintiffs said that with a lodestar of $1,525,744.40 and $23,805.76 in total costs they are already above the $1,100,000 cap.
In the order approving the settlement, Judge Kelley gave final certification to the following classes:
“All rental applicants who used publicly funded housing vouchers and sought but were denied housing in Massachusetts because of their SafeRent Score at any property using SafeRent’s tenant screening services between May 25, 2021 and the date of the entry of the Preliminary Approval Order (the ‘Massachusetts Income- Based Settlement Class’).
“All Black and Hispanic rental applicants who used publicly funded housing vouchers and sought but were denied housing in Massachusetts because of their SafeRent Score at any property using SafeRent’s tenant screening services between May 25, 2020 and the date of the entry of the Preliminary Approval Order (the ‘Massachusetts Race-Based Settlement Class’).”
In granting the motion for attorney fees, Judge Kelley said the ranges used to calculate the lodestar are reasonable and noted that plaintiffs’ counsel spent two years litigating the case. Judge Kelley awarded class counsel $1,077,547.68 from SafeRent. Judge Kelley also granted $10,000 each for named plaintiffs Louis and Douglas.
Counsel
The plaintiffs are represented by Christine E. Webber and Brian Corman of Cohen Milstein Sellers & Toll PLLC in Washington, D.C., Todd S. Kaplan of Greater Boston Legal Services in Boston and Shennan Kavanagh, Ariel C. Nelson and Stuart Rossman of National Consumer Law Center in Boston.
SafeRent is represented by Andrew Soukup and Rachel Ellen Grossman of Covington & Burling in Washington, D.C.
(Additional documents available: Plaintiffs’ unopposed motion for final approval. Document #46-241211-027B. Plaintiffs’ motion for attorney fees. Document #46-241211-029B. Amended complaint. Document #46-241211-028C.)