$100 Million Settlement Agreement Reached in Dealership Antitrust Class Action
by Kaitlin Gagnon
Dealership Class Plaintiffs and CDK Global, LLC reached a settlement agreement in the ongoing nationwide antitrust class action involving U.S.-based automotive dealerships. CDK has agreed to pay $100 million to the Dealership Class and up to an additional $250,000 in notice and claims administration costs.
A motion for preliminary approval was filed in Illinois federal court on Friday, August 16, 2024.
If approved, the settlement will end nearly seven years of litigation and resolve claims on behalf of thousands of car dealerships, involving an alleged conspiracy by CDK and The Reynolds and Reynolds Company to charge unlawful prices in the markets for Dealer Management System (“DMS”) services and Data Integration Services (“DIS”).
A trial against CDK had been scheduled to begin in September.
The settlement does not constitute any admission of wrongdoing or liability by any party, and was entered solely to avoid the further inconvenience, distraction and disruption of burdensome litigation and to reach certain and final resolution between CDK and U.S.-based retail automotive dealerships that purchased a CDK and/or Reynolds DMS between September 1, 2013 and August 15, 2024. A prior settlement with Reynolds for $29.5 million was approved in 2019.
If approved by the Court, settlement funds will be distributed to both CDK and Reynolds Settlement Class Members under the allocation plan which will be posted to the dealership class website.
After almost seven years of litigation and extensive settlement negotiations, we have reached agreement with CDK to resolve dealership class plaintiffs’ claims. This settlement provides a significant monetary recovery for the class, and we look forward to being able to distribute funds from the settlement with CDK, as well as funds from our prior settlement with Reynolds.
–Peggy J. Wedgworth, Milberg Senior Partner & Dealership Lead Counsel
The Milberg team also includes Partners Elizabeth McKenna and Robert A. Wallner, Senior Counsel John D. Hughes, Senior Associate Michael Acciavatti, and Paralegal Andrew Sabo.
Additional information regarding the settlement and developing updates can be found by visiting the dealership class website.
