This is technically true. Leather corals release chemicals that inhibit other coral growth. The technical term for this is alleopathy. Many corals use this strategy to compete for space on the reef. The effectiveness of these chemicals is dependent on concentration, which is directly related to the size and number of corals producing them and indirectly related to system water volume (e.g. a big leather in a small tank could be problematic). However, most reef tanks shouldn't be affected by these chemicals because we are actively removing them. Protein skimming, water changes and GAC all remove them. So, as long as there is adequate removal alleopathic competition shouldn't have a large impact on a reef tank.