CDK Global Agrees to $100 Million Settlement with Dealerships
CDK Global Settles Lawsuit with Dealership Class for $100 Million
A recent federal court ruling has paved the way for a significant legal settlement between a class of dealership plaintiffs and CDK Global, LLC. This agreement was preliminarily approved by a federal court and is tied to the lawsuit identified as In re: Dealer Management Systems Antitrust Litigation. The litigation concerns claims of conspiracy engaging in unlawful pricing within the Dealer Management System Services and Data Integration Services market.
Details of the Settlement
As stipulated in the settlement, CDK has committed to paying a total of $100 million. This amount is intended for the benefit of U.S.-based retail automotive dealerships that procured a DMS from either CDK or Reynolds during the specified time frame. This period spans from September 1, 2013, to August 15, 2024. Furthermore, CDK has allocated up to $250,000 to handle notice and claims administration procedures.
Avoiding Further Litigation
It's crucial to note that this settlement does not involve any admission of guilt or liability on the part of CDK. It represents a strategic decision to move on from a disruptive litigation process, ensuring a more certain and definitive resolution for all parties involved. Documentation regarding the CDK Settlement Agreement, along with critical related papers, can be found on the designated online portal.
Notice to Dealerships
Dealerships should anticipate receiving notifications regarding the CDK Settlement shortly. They can visit the dedicated website to file any claims related to the settlement. Dealership Counsel and the Settlement Administrator are providing complimentary assistance throughout the claim submission process, eliminating the need for additional third-party help.
Claim Submission Process
Information on how to submit a claim is readily available on the website. Throughout the submission process, it's emphasized that dealerships will not incur any additional charges for assistance with their claims. This initiative seeks to simplify and expedite the claims handling for the parties involved.
Prior Settlement Highlights
A prior settlement involving the company Reynolds occurred in 2019, amounting to $29.5 million, which has already been sanctioned by the court. The funds from this previous agreement are currently held in an escrow account. Any dealer who acquired a DMS from CDK or Reynolds during the specified time range might be eligible for reimbursement from one or both settlements.
Distribution of Settlement Funds
If the court extends final approval to the CDK Settlement, the distribution of funds from both agreements will be determined by multiple factors, primarily the volume of claims that are filed. Once the court finalizes the distribution methodology, settlements proceeds will be allocated in accordance with the court’s directives.
Contact Information
For more detailed information, interested parties can reach out to Class Counsel through the provided contact channels to clarify any questions pertaining to the settlement.
Frequently Asked Questions
What is the CDK Global settlement about?
The settlement addresses allegations of unlawful pricing practices in the Dealer Management System Services market, resulting in CDK agreeing to pay $100 million.
How can dealerships file claims?
Dealerships will receive notifications and can file claims directly through the designated website, with assistance provided at no charge.
Is there an admission of wrongdoing by CDK?
No, the settlement does not imply any wrongdoing or liability by CDK; it is a resolution to avoid further litigation.
What happens to the money from previous settlements?
The previously authorized settlement with Reynolds is in an escrow account, and eligible dealerships may reclaim funds from it as well.
When will the funds be distributed?
Distribution of funds will occur after the court grants final approval of the settlement, with distribution criteria based on filed claims.
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