Feb 18 (Reuters) - Data analytics giant Equifax ( EFX )

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 ( EFX ) 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 ( EFX )

receives verification information through its contracts with

payroll providers and major companies, the lawsuit said.

Greystone Mortgage and First Financial Lending said Equifax ( EFX )

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 ( EFX ) 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 in a statement said they welcomed

the judge's ruling and will be "developing the record to support

our clients' allegations concerning Equifax's ( EFX ) anticompetitive

conduct."

The lawsuit was filed last May on behalf of a proposed class

of at least tens of thousands of purchasers of Equifax's ( EFX ) income

and employment services.

Greystone Mortgage and First Financial Lending said

Equifax's ( EFX ) alleged monopolization has meant fewer options and

higher prices for companies that rely on electronic

verification.

The lawsuit also accused Equifax ( EFX ) of using acquisitions to

maintain unfair dominance.

Murphy said Equifax's ( EFX ) 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 ( EFX ),

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 ( EFX ) hit with antitrust class action over work

verification services