CDK Global $129M Antitrust Settlement

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

The companies have agreed to settle a class action lawsuit for alleged anti-competitive practices in the DMS and Data Integration Services markets.

Who can file a claim?

To be eligible to submit a claim, you must:

• You must be located in the United States.
• Your business must involve the retail sale of automobiles.
• You must have purchased DMS from CDK and/or Reynolds during the specified period.

How much can class members get?

The settlement fund totals $129.5 million, combining $100 million from CDK and $29.5 million from Reynolds. The exact amount each class member will receive is currently unknown. The distribution will follow an allocation plan that considers the duration of DMS usage during the settlement periods.

• CDK Settlement Class Members: Payments will be determined based on the length of DMS usage and the number of valid claims filed.
• Reynolds Settlement Class Members: Similar criteria apply, and members of both classes will have their payments calculated accordingly.

If the award amount is subject to a net settlement fund calculation, the distribution will be adjusted based on the number of valid claims. For example, if there are 1,000 valid claims, each claim might receive a proportionate share of the total settlement fund after deducting legal fees and expenses.

Is proof required to submit a claim?

Yes, claimants must provide proof of their DMS usage. This involves submitting signed contract documents with Reynolds or CDK that establish the term or length of the DMS usage. These documents must include the dealership's name, contract date, and agreement term.

How to claim an award

To claim an award, class members must submit a claim form by January 9, 2025. Claims can be submitted online through the online claim form or by mailing the completed form to:

DMS Antitrust Litigation

ATTN: CLAIMS

P.O. Box 6727

Portland, OR 97228-6727

The claim form is also available for download in PDF format.

Payment methods

• Check mailed to the address provided in the claim form.
• Direct deposit, if banking information is provided during the claim process.

$129,500,000 Settlement Fund Breakdown

• CDK will contribute $100 million, plus $250,000 for notice and administration costs.
• Reynolds previously settled for $29.5 million.
• Attorneys' fees are expected to be up to 33.3% of the settlement funds.
• Litigation expenses will not exceed $7.5 million.
• Service awards of up to $10,000 will be given to each of the 23 class representatives.

Important dates

• Fairness Hearing: February 25, 2025
• Deadline to File a Claim: January 9, 2025
• Deadline to Exclude Yourself: November 7, 2024
• Deadline to Object to Fee & Expense Application: December 12, 2024

When is the CDK and Reynolds Settlement payout date?

The court will hold a Fairness Hearing on February 25, 2025, to decide whether to approve the settlement. If approved, payments will be distributed to class members who submitted valid claims.

Why is there a class action settlement?

The lawsuit alleged that CDK and Reynolds conspired to charge unlawful prices in the markets for DMS and Data Integration Services, violating federal antitrust laws. The settlement allows the parties to avoid the cost and risk of trial and provides a fair resolution for all involved.