Dealership Class Settlement with Reynolds

In re Dealer Management Systems Antitrust Litigation, MDL No. 2817 (N.D. Ill.)

A settlement with The Reynolds and Reynolds Company has been reached in an antitrust class action lawsuit (the Dealership Class Action in In re Dealer Management Systems Antitrust Litigation, MDL No. 2817 (N.D. Ill.)) over the price of Dealer Management Systems (“DMS”) purchased from Reynolds and/or CDK Global, LLC during the period January 1, 2015 through October 23, 2018, including related vendor integration services. The lawsuit alleges CDK and Reynolds unlawfully colluded to force auto dealerships to pay more for DMS than they should have. Reynolds denies any wrongdoing and the Court has not ruled that Reynolds did anything wrong or violated any law. The Settlement is with Reynolds only; the litigation continues against CDK.

The Court ordered that the law firms of Milberg Tadler Phillips Grossman LLP, Bellavia Blatt, P.C., Gustafson Gluek PLLC, and Robbins Geller Rudman & Dowd LLP will represent the Dealership Class (“Dealership Class Counsel”). The Court also ordered that The Clifford Law Offices will act as liaison counsel for the entire MDL.

In exchange for the release of claims in the Dealership Class Action Reynolds will pay $29,500,000 for the benefit of the Dealership Class. This $29.5 million Settlement Fund, net of any fees and expenses allowed by the Court, will be made available to Dealership Class Members at the end of the lawsuit against all Defendants. The cash will be distributed to Dealership Class Members who submit valid claim forms.

The “Dealership Class” means 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 January 1, 2015 through October 23, 2018.

Dealership Class Members should keep all documentation on their DMS purchases, including invoices paid to vendors, from January 1, 2015 through October 23, 2018 for use in a claim form later. Once this lawsuit is concluded against all Defendants, the Settlement Fund will be distributed based on the claim forms submitted by Dealership Class Members, subject to an allocation plan approved by the Court, upon further notice to the Dealership Class. Dealership Class Members do not need to sign up with a claims recovery service to participate in the Settlement. No-cost claims filing assistance will be available from Dealership Class Counsel and the Settlement Administrator once claim forms become available. The settlement website www.dealershipclassDMSsettlement.com will display updated claims information. Dealership Class Members may register their email addresses at www.dealershipclassDMSsettlement.com to receive email alerts of future notices, including the claim form when the claims process begins.

The Court will hold a Settlement Hearing on January 22, 2019 at 10:00 a.m., and will consider whether to approve the Settlement and the request by Dealership Class Counsel for up to $3 million from the Settlement Fund in litigation expenses (including expert fees, deposition costs, and other expenses). Dealership Class Counsel are not seeking any attorneys’ fees or service awards for the plaintiffs at this time. The notification about the claims process will include information about any applications for litigation expenses above $3 million, for attorneys’ fees, or for service awards for the plaintiffs. Any fee request will not exceed one-third of the amounts ultimately recovered on behalf of the Dealership Class.

If a Dealership Class Member doesn’t want to be eligible to receive a settlement payment, or doesn’t want to be legally bound by this Settlement, it must exclude itself by January 2, 2019, or it won’t be able to sue, or continue to sue, Reynolds about the legal claims in this case. If a Dealership Class Member excludes itself, it will not be eligible to receive a payment under this Settlement. If a Dealership remains a Dealership Class Member, it may object to the Settlement and/or the request for litigation expenses by January 2, 2019.

For more information, visit www.dealershipclassDMSsettlement.com, call 1-888-842-3161, or write to Dealership Class Settlement—DMS Antitrust Litigation, c/o Epiq, Settlement Administrator, P.O. Box 6727, Portland, OR 97228-6727.

You can also contact Dealership Class Counsel: Peggy J. Wedgworth, Milberg Tadler Phillips Grossman LLP, One Pennsylvania Plaza, 19th Floor, New York, NY 10119, Tel: (212) 594-5300, pwedgworth@milberg.com; or Leonard A. Bellavia, Bellavia Blatt, PC, 200 Old Country Road, Suite 400, Mineola, NY 11501, Tel: (516) 873-3000, lbellavia@dealerlaw.com