Equifax must face antitrust lawsuit over verification services

Equifax

18/02/2025 22:09

By Mike Scarcella
       Feb 18 (Reuters) - Data analytics giant Equifax  EFX.N 
must face a lawsuit by home mortgage lenders that accused it of
monopolizing the market for electronic income and employment
verification services, a federal judge in Philadelphia ruled on
Tuesday.
    U.S. District Judge John Murphy rejected Equifax's motion to
dismiss the case brought by Greystone Mortgage and First
Financial Lending, which alleged that the company used exclusive
long-term deals with worker data sources to squelch competition.
    Employers, landlords and lenders use electronic verification
to review applicants’ income and employment information. Equifax
receives verification information through its contracts with
payroll providers and major companies, the lawsuit said.
    Greystone Mortgage and First Financial Lending said Equifax
is violating U.S. antitrust law by locking up data sources and
blocking rival verification services from receiving the same
work and income information.
    Equifax in a statement defended its platform and said it
will "continue to respond to this litigation through the
appropriate legal channels."
    Lawyers for the plaintiffs did not immediately respond to a
request for comment.
    The lawsuit was filed last May on behalf of a proposed class
of at least tens of thousands of purchasers of Equifax’s income
and employment services.
    Greystone Mortgage and First Financial Lending said
Equifax’s alleged monopolization has meant fewer options and
higher prices for companies that rely on electronic
verification.
    The lawsuit also accused Equifax of using acquisitions to
maintain unfair dominance.
    Murphy said Equifax’s industry deals ultimately “may be more
procompetitive than anticompetitive,” but he said that dispute
is “for a different day.”
    The judge set a March 25 hearing to address the next phase
of the lawsuit.
    
    The case is Greystone Mortgage Inc and First Financial
Lending LLC v. Equifax Workforce Solutions LLC and Equifax Inc,
U.S. District Court for the Eastern District of Pennsylvania,
No. 2:24-cv-02260.
    For plaintiffs: Katie Beran and Brian Ratner of Hausfeld;
Bruce Gerstein and David Rochelson of Garwin Gerstein & Fisher;
and Joshua Grabar of Grabar Law Office
    For defendant: Leah Brannon and David Gelfand of Cleary
Gottlieb Steen & Hamilton, and Christopher Casey of Duane Morris
    
    Read more:
    Equifax hit with antitrust class action over work
verification services