CDK Global Settles Lawsuit with Dealership Class for $100 Million
A recent decision by a federal court has cleared the way for a substantial settlement between a group of dealership plaintiffs and CDK Global, LLC. This settlement has received preliminary approval from the federal court and is connected to the case known as In re: Dealer Management Systems Antitrust Litigation. The lawsuit focuses on allegations of collusion related to unlawful pricing practices within the Dealer Management System Services and Data Integration Services sectors.
Settlement Details
According to the settlement terms, CDK has agreed to pay a total of $100 million. This amount is designated to benefit U.S.-based retail automotive dealerships that purchased a DMS from either CDK or Reynolds during the time frame from September 1, 2013, to August 15, 2024. Additionally, CDK has set aside up to $250,000 to cover notice and claims administration costs.
Avoiding Further Litigation
It’s important to understand that this settlement does not constitute an admission of guilt or liability by CDK. Instead, it reflects a strategic choice to close this chapter on a lengthy and disruptive litigation process, ultimately leading to a more predictable outcome for everyone involved. Documentation regarding the CDK Settlement Agreement, along with other essential papers, can be accessed through the specific online portal.
Notice to Dealerships
Dealerships can expect to receive notifications about the CDK Settlement soon. They can go to the dedicated website to submit claims related to the settlement. Dealership Counsel and the Settlement Administrator are providing free support during the claim submission process, so there’s no need for extra third-party assistance.
Claim Submission Process
The website offers clear information on how to submit a claim. Throughout this process, dealerships won’t face any additional fees for assistance with their claims. This initiative aims to make the claims process easier and faster for everyone involved.
Highlights from Prior Settlements
In 2019, a previous settlement with Reynolds resulted in $29.5 million, which has already been approved by the court. The funds from this earlier agreement are currently secured in an escrow account. Any dealer who obtained a DMS from CDK or Reynolds within the specified time frame may be eligible for compensation from one or both settlements.
Distribution of Settlement Funds
If the court grants final approval to the CDK Settlement, the allocation of funds from both settlements will depend on several factors, primarily the number of claims submitted. Once the court finalizes the distribution method, the settlement proceeds will be distributed according to its guidelines.
Contact Information
For any further details, those interested can contact Class Counsel through the provided channels to ask any questions related 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.
