**Plaintiffs Accuse Equifax of Antitrust Violations in Class Action Complaint**
In a class action complaint filed on May 28, 2024, in the United States District Court for the Eastern District of Pennsylvania, Greystone Mortgage, Inc. and First Financial Lending LLC have accused Equifax Workforce Solutions LLC and Equifax, Inc. of antitrust violations. The plaintiffs allege that Equifax has engaged in a willful acquisition and maintenance of monopoly power in the market for electronic verification of income and/or employment (Electronic VOIE Services).
The plaintiffs argue that Equifax's actions have stifled competition and allowed the company to charge supracompetitive prices for its services. They claim that Equifax's monopolistic behavior includes entering into multi-year exclusive agreements with payroll providers and large employers, sharing monopoly profits with these data contributors to secure exclusivity, and acquiring potential competitors to prevent them from gaining a foothold in the market.
According to the complaint, Electronic VOIE Services are essential for consumer finance transactions such as mortgage applications, car loans, and apartment rentals. These services provide forward-looking information about a consumer’s ability to make payments by verifying their employment and income status. The plaintiffs allege that without these services, many consumers would be unable to obtain necessary financial products.
The complaint details how Equifax has allegedly maintained its monopoly through various anticompetitive practices. For instance, it is claimed that Equifax entered into exclusive deals with payroll software providers like ADP, Paychex, Intuit QuickBooks, and large employers such as Walmart and Home Depot. These agreements purportedly deny competitors access to critical data inputs needed to build viable competing VOIE services.
Moreover, the plaintiffs accuse Equifax of sharing its monopoly profits with data contributors through "revenue shares," thereby incentivizing these entities to provide their data exclusively to Equifax. This practice allegedly raises rivals' costs and prevents them from entering the market effectively.
The complaint also highlights several acquisitions made by Equifax since 2018 aimed at eliminating potential competitors or acquiring valuable data assets. These acquisitions include companies like HIREtech, i2 Verify, Appriss Insights, and Efficient Hire. The plaintiffs argue that these acquisitions have further insulated Equifax from competition.
As a result of these practices, the plaintiffs claim that purchasers of Electronic VOIE Services have suffered antitrust injury in the form of overcharges due to supracompetitive pricing. They also argue that consumers have been denied meaningful choices in service providers who might offer better privacy protections for their data.
The plaintiffs seek treble damages under Section 4 of the Clayton Antitrust Act and injunctive relief under Section 16 of the same act. They demand a jury trial for all issues so triable.
Representing Greystone Mortgage Inc., First Financial Lending LLC are attorneys from prominent law firms specializing in antitrust litigation. The case is presided over by Judge JFM under Case No: 2:24-cv-02260-JFM.