CDK Global Agrees to $100M Settlement in DMS Antitrust Lawsuit

_Update_: On August 23, 2024, the Court granted preliminary approval with CDK.

If you are a U.S.-based auto dealership that purchased a Dealer Management System (DMS) from CDK or Reynolds between September 1, 2013, and August 15, 2024, you may be eligible to claim a portion of a $129.5 million settlement from a class action settlement.

CDK Global, LLC has agreed to pay $100 million to settle a class action lawsuit for alleged conspiracy to charge unlawful prices in the markets for Dealer Management System (DMS) Services and Data Integration Services (DIS). This settlement follows a prior settlement with Reynolds for $29.5 million.

Who can submit a claim?

To be eligible to submit a claim, you must:

• Be a United States auto dealership
• Have purchased a dealer management system from CDK and/or Reynolds from September 1, 2013, through August 15, 2024

How much can dealerships get?

The exact payment each Settlement Class Member will receive is currently unknown.

Funds will be distributed to CDK and/or Reynolds Settlement Class Members according to the Allocation Plan, which will be available on the official settlement website.

Settlement fund now totals $129,500,000

The settlement fund of $129,500,000 now covers the following:

• $100 million from CDK for the benefit of CDK Settlement Class Members.
• $29.5 million from the prior Reynolds Settlement.
• Up to $250,000 for notice and administration costs.
• Attorneys’ fees not to exceed 33.3% of the Settlement Funds.
• Litigation expenses not to exceed $7.5 million.
• Service awards of up to $10,000 for each of the twenty-three Class Representatives.

Why is there a class action settlement?

This lawsuit is a class action formally known as In re Dealer Management Systems Antitrust Litigation, MDL 2817, 18-cv-00864 (N.D. Ill.) and is pending approval in the United States District Court for the Northern District of Illinois before Judge Rebecca R. Pallmeyer.

The Dealership Plaintiffs sued CDK and Reynolds alleging that they conspired to charge unlawful prices in the markets for DMS and DIS, violating federal antitrust laws and certain state antitrust and consumer protection laws.

CDK and Reynolds deny the claims, and the Court has not decided which side is right.

What happens next?

Next, the Court will hold a Fairness Hearing to decide whether to approve the CDK Settlement, the Fee and Expense Application, and the Allocation Plan. If approved, the Settlement Funds will be distributed to eligible class members.