Dealer Management Systems Antitrust Litigation

What’s this Case About?

This class action, In re Dealer Management Systems Antitrust Litigation, MDL 2817, 18-cv-00864, is pending in the United States District Court for the Northern District of Illinois. The case was initiated by a group of U.S. auto dealerships who sued the Reynolds Company (Reynolds) and CDK Global, LLC (CDK) alleging that they conspired to raise and fix the price of their dealer management services (DMS) in violation federal and state antitrust and consumer protection laws. CDK and Reynolds deny the claims in the lawsuit and the parties agreed to settle the case, allowing them to avoid the cost and risk of trial.

Who Qualifies Under the Proposed Settlement?

All persons and entities located in the United States engaged in the business of the retail sale of automobiles who purchased DMS from CDK and/or Reynolds, (or any predecessor, successor, subsidiary, joint venture or affiliate), during the period from September 1, 2013 through August 15, 2024, potentially qualify under the proposed settlement.

Is Documentation Required?

To qualify for compensation from the proposed settlement, the court appointed Claims Administrator is requiring documentation to demonstrate the time periods you were using Reynolds’ and/or CDK’s DMS.  Specifically, Reynold’s DMS users should provide signed “exhibit(s)” to their Master Agreements to show the term or length of the Reynold’s contract(s). CDK users should provide Schedule(s) to their Master Agreements to show their contract(s) term and length.    

How much Money Does the Proposed Settlement Provide?

If the court approves the CDK settlement at the Fairness Hearing currently scheduled for February 25, 2025,  the total of the CDK and Reynolds settlements  will be $129.5 million, plus interest. At this time, the exact payment each Settlement Class Member will receive is unknown, but it will largely be determined by the duration of your applicable Dealer Management Services and the number of claims filed and accepted by the Claims Administrator.  Additional information can be found at the court appointed claims administrator site: www.dealershipclassdmssettlement.com.