A venture capital-backed startup illegally jacked up rents for furnished apartments in Los Angeles — more than 50% in one example — after last month’s wildfires that destroyed thousands of homes, the city attorney’s office alleged in a lawsuit.
Blueground US Inc. violated California’s anti-gouging law, which prohibits rent hikes of more than 10% after a state of emergency is issued, City Attorney Hydee Feldstein Soto said in a statement.
Governor Gavin Newsom declared a state of emergency on Jan 7. in response to the fires that rank among the most destructive in state history.