Los Angeles City Atty. Hydee Feldstein Soto has sued the apartment behemoth Blueground US Inc., alleging the provider of furnished rentals engaged in multiple instances of illegal price gouging in the wake of the region’s fires.
Under a state of emergency, landlords and their representatives are generally barred from raising rent more than 10% above what they charged or advertised before the fires broke out Jan. 7.
In its lawsuit, announced Tuesday, the city attorney’s office cited more than 10 cases in which it alleged Blueground engaged in illegal price gouging, including at one apartment in downtown Los Angeles where the company raised rent more than 30%, from $4,140 a month to $5,400.
Blueground, which could not immediately be reached for comment, is not a typical apartment company. It leases units from property owners, furnishes the apartments and then rents the units to tenants and businesses that need long-term housing for their workers.
Its website says Blueground operates worldwide, though it’s unclear whether the entity the city attorney sued, Blueground US Inc., is only an American subsidiary.
“It is not only unconscionable for Blueground to take advantage of Angelenos when they are at their most vulnerable, it is illegal and must stop immediately,” Feldstein Soto said in a statement.
The action announced Tuesday is the latest authorities have made since widespread reports of illegal price gouging became known after the fires.
The California Attorney General’s office has filed at least two criminal cases against L.A.-area real estate agents. Some real estate listings firms like Zillow have also moved to take down listings in which rent was raised beyond the 10% threshold.
