dms antitrust class action settlement

BASIC INFORMATION

1. What is this Lawsuit About?

   This lawsuit is a class action known as In re Dealer Management Systems Antitrust Litigation, MDL 2817, 18-cv-00864 (N.D. Ill.) before Judge Rebecca R. Pallmeyer (the “Court”) in the United States District Court for the Northern District of Illinois.

   A group of U.S. auto dealerships (“Dealership Plaintiffs”) sued CDK Global, LLC (“CDK”) and The Reynolds and Reynolds Company (“Reynolds”) (collectively, “Defendants”) alleging that they conspired, in violation of federal antitrust laws and certain state antitrust and consumer protection laws, to restrain and/or eliminate competition by charging Dealership Plaintiffs more than they should have in the markets for Dealer Management Systems (“DMS”) Services and Data Integration Services (“DIS”). CDK and Reynolds deny the claims in the lawsuit. The Court has not decided which side is right. A copy of the complaint and other important court filings are available here.

   The Court previously approved a class action settlement with Reynolds in 2019 (“Reynolds Settlement”). A copy of the Reynolds Settlement Agreement and other Reynolds Settlement documents are available here. Dealership Plaintiffs continued to litigate this case against CDK and a trial was scheduled to begin in September 2024. Dealership Plaintiffs and CDK agreed to settle the lawsuit prior to the trial.

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2. What is a Class Action and Who is Involved?

   In a class action, one or more people called “Class Representatives” sue on behalf of those who have similar claims. The individuals together are a “Class” or “Class Members.” Class Members do not have to file a lawsuit to participate in the class action settlement. One court resolves the issues for everyone in the Class, except for those who properly exclude themselves from the Class (see Question 13). Because Dealership Plaintiffs and CDK seek to resolve this lawsuit on behalf of a Class through settlement, that class is referred to as a “Settlement Class.”

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3. Why is There a Settlement with CDK?

   The Court did not decide in favor of the Dealership Plaintiffs or CDK. The parties agreed to settle the case, allowing them to avoid the cost and risk of trial, concluding the lawsuit and establishing a fair and final resolution for all involved. As the Court has approved the CDK Settlement, members of the CDK Settlement Class who have filed valid and timely claims will be eligible to receive a payment from that Settlement. The lawyers representing CDK and the lawyers representing the Dealership Class (“Class Counsel”) have engaged in extensive negotiations regarding the issues presented in the lawsuit and the terms of a settlement. Dealership Plaintiffs and Class Counsel believe the CDK Settlement is fair, reasonable, adequate, and in the best interests of the Dealership Class.

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4. Do I Need to Sign Up with a Claims Recovery Service to Get a Payment or Maximize My Recovery?

   No. Filing assistance was available from Dealership Class Counsel and the Settlement Administrator, Epiq, AT NO COST.

   You will recover the maximum amount you are entitled to if you directly filed your own claim with the Settlement Administrator. Entities other than Class Counsel or the Settlement Administrator, Epiq, are not approved by the Court in this lawsuit. Non-party claims settlement services were not necessary in order for class members to submit claims – the claim submission process was streamlined and minimal documentation was required.

   The January 10, 2025 deadline to submit a claim to get a payment from the Settlement Funds has passed.

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5. Am I Part of the CDK Settlement Class?

   The Court directed, for the purposes of the CDK Settlement only, that everyone who fits the following description is a CDK Settlement Class Member:

   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.

   If you meet the above definition, unless you exclude yourself, you are a member of the CDK Settlement Class and will be included in the CDK Settlement.

   The CDK Settlement Class does not include:

   The Defendants in this litigation (CDK and Reynolds), including any entity or division in which any Defendant has a controlling interest, as well as Defendants’ joint ventures, subsidiaries, affiliates, assigns and successors.

   Heavy trucking, motorcycle, used vehicle, and/or recreational vehicles are not considered “automobiles” for the purpose of this litigation. Dealerships that solely engaged in the business of retail sale of heavy trucks, motorcycles, used vehicles, and/or recreational vehicles are not included in the settlement classes with either CDK or Reynolds and are not eligible to make claims under either settlement.

   Entities not engaged exclusively in the business of retail sale of automobiles are also not qualifying Class Members. Examples of such non-Class Member entities include but are not limited to collision centers, body shops, administrative buildings, management offices, IT departments, finance centers, and other entities that are not physical dealerships engaged in the retail sale of automobiles.

   Finally, individuals filing claims based on personally owned automobiles are not included in the settlement classes with either CDK or Reynolds and are not eligible to make claims under either settlement.

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6. Can I be a Member of Both the CDK Settlement Class and the Reynolds Settlement Class?

   Yes. Being a member of the Reynolds Settlement Class (see Question 23 below) or CDK Settlement Class (see Question 5 above) does not depend on which Defendant’s DMS you used.

   For example, if you used a Reynolds and/or CDK DMS during the Reynolds Settlement Class Period (January 1, 2015 – October 23, 2018) and did not exclude yourself from the Reynolds Settlement back in 2019, you are a member of the Reynolds Settlement Class. If you used a Reynolds and/or CDK DMS during the CDK Settlement Class Period (September 1, 2013 – August 15, 2024) and do not exclude yourself from the CDK Settlement by November 7, 2024 (see Question 13), you are a member of the CDK Settlement Class. If you used a Reynolds and/or CDK DMS during both Settlement Class Periods, you can be a member of both Settlement Classes.

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   THE BENEFITS OF THE CDK SETTLEMENT

7. What Does the CDK Settlement Provide?

   As part of the Settlement, CDK will pay $100 million for the benefit of CDK Settlement Class Members, plus notice and administration costs up to $250,000. The CDK Settlement resolves all CDK Settlement Class Members’ claims against CDK for the released claims (as described in the CDK Settlement Agreement). The CDK Settlement also resolves all of CDK’s claims against certain Dealership Named Plaintiffs alleging breach of contract, and violations of the Computer Fraud and Abuse Act and Digital Millennium Copyright Act. A copy of the CDK Settlement Agreement, including a description of the released claims, is available here.

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   HOW TO GET A PAYMENT FROM THE SETTLEMENT FUND

8. How Can I File a Claim to Get a Payment from the Settlement Funds?

   If you did not submit a valid Claim Form by the deadline, you will not receive a payment from the Settlement Funds, but you will be bound by the Court’s judgment in these actions.

   Payments from the Settlement Funds will not be distributed until the Court grants final approval of the allocation and distribution of the Settlement Funds. Any objections or appeals must also be resolved. Settlement updates will be provided on this website or may be obtained through contacting the Settlement Administrator.

   The January 10, 2025 deadline to submit a claim to get a payment from the Settlement Funds has passed.

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9. If I Provide Supporting Documentation with my Claim Form, will this Violate Confidentiality Provisions/Other Provisions in my Contract(s) with CDK and/or Reynolds?

   No. Any contract document that you submit to support your claim for the Reynolds and/or CDK Settlements, including your CDK “Schedule” to the Master Services Agreement and/or your Reynolds “Exhibit” to the Master Agreement, is treated as “Highly Confidential” under the Second Amended Confidentiality Order available here. CDK and Reynolds agree that submitting these documents during the claim submission process, solely for the purpose of validating your claim in this case, will not violate any confidentiality provisions/other provisions.

   In your Master Services Agreement with CDK, you may see a clause regarding your right to participate in a class action lawsuit against CDK. Solely for purposes of submitting a claim for potential recovery, CDK has agreed that you will not be in violation of any MSA term if you submit a Claim Form with supporting documentation.

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10. How Much Will I Receive in Payment from the Settlement Funds?

    At this time, the exact payment each Settlement Class Member will receive is unknown; however, if approved by the Court, Settlement Funds will be distributed to CDK and/or Reynolds Settlement Class Members pursuant to the Allocation Plan available here. Please note that the Court has the authority to modify the proposed Allocation Plan as part of the approval process, so the method of calculating your payment may change.

    Your settlement payment will be affected by how many valid claims are filed, whether you are a member of the CDK Settlement Class, the Reynolds Settlement Class, or both, and the duration of your DMS usage during the Settlement Class Periods.

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    YOUR RIGHTS AND OPTIONS

11. What am I Giving Up by Staying in the CDK Settlement Class?

    Unless you excluded yourself from the CDK Settlement Class you will remain in the CDK Settlement Class, which means you will give up your right to sue CDK on your own for the claims described in the CDK Settlement Agreement. You also will be bound by any decisions by the Court relating to the CDK Settlement. If you have any questions, you can speak with Class Counsel for free, or you can speak with your own lawyer (at your own expense). The CDK Settlement Agreement, including the specific releases that are excerpted in part below, is available here. If you remained in the CDK Settlement Class, that means that, upon the “Effective Date,” you released all “Dealership Released Claims” (as defined below) against the “CDK Releasees” (as defined below) with the exception of certain claims that are specified below.

    “Dealership Released Claims” means any and all claims and causes of action (whether class, representative, individual or otherwise), existing as of or prior to the Effective Date whether asserted or unasserted, known or unknown, suspected or unsuspected, foreseen or unforeseen, actual or contingent, liquidated or unliquidated, that CDK Settlement Class members (“CDK Settlement Class Releasors”) have against CDK Releasees (i) that were asserted in Dealership Class Plaintiffs’ complaints previously filed in MDL Litigation 2817 (including the Complaint), or (ii) that arise out of or relate to the facts, agreements, conspiracies, communications, or announcements alleged in such complaints under any antitrust, unjust enrichment, unfair competition, unfair practices, trade practices, price discrimination, unitary pricing, racketeering, contract, civil conspiracy or consumer protection law, whether under federal, state, local or foreign law, including claims for damages (whether actual, punitive, treble, compensatory, or otherwise), costs, fees, expenses, penalties, and attorneys’ fees; provided, however, that nothing herein shall release any claim involving any negligence, personal injury, breach of contract, bailment, failure to deliver lost goods, damaged or delayed goods, product defect, securities, or other claims relating to CDK’s DMS. For clarity, Dealership Released Claims do not include any and all claims, demands, and causes of action that CDK Settlement Class Releasors have against CDK Releasees, whether known or unknown, foreseen or unforeseen, suspected or unsuspected, actual or contingent, liquidated or unliquidated, that relate in any way to any data breach, cyberattack, or cybersecurity incident, including but not limited to any data breach, cyberattack, and/or security incident publicly reported in June 2024 involving CDK’s DMS.

    The Settlement Agreement (a) does not affect, release, or alter any contractual obligation between CDK and any Dealership Settlement Class Member including (i) for CDK, any obligation to provide products or services to any Dealership Settlement Class Member, and (ii) for the Dealership Settlement Class Member, any obligation to pay for those products or services; and (b) does not affect or release any claims or counterclaims asserted as of the Effective Date, in the action entitled Asbury Automotive Group, Inc. v. CDK Global, LLC, Civ. No. 24-A-04939-3 (Superior Court of Gwinnett County, State of Georgia).

    “CDK Releasees” and “CDK Releasors” mean CDK, and all of their respective current and former, direct and indirect parents, owners, subsidiaries, affiliates, divisions, predecessors, successors, assigns, insurers, and shareholders; and all respective current and former officers, directors, principals, partners, members, heirs, attorneys, representatives, agents, and employees of each of the foregoing entities.

    “Effective Date” is August 15, 2024.

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12. What Happens if I Do Nothing at All?

    If you do nothing, you will automatically remain a member of the CDK Settlement Class. You will be legally bound by the CDK Settlement if it is approved, even if you do not submit a Claim Form on or before the January 10, 2025 deadline, which has now passed.

    If the CDK Settlement is approved, the claims against CDK will be completely released and you will never be able to sue CDK concerning the claims in this lawsuit. In order to receive any of the Settlement Funds, you had to submit a Claim Form by the January 10, 2025 deadline, which has now passed.

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13. How Do I Exclude Myself from the CDK Settlement Class?

    The deadline to request exclusion from the CDK Settlement Class was November 7, 2024 and has passed. It is now too late to request exclusion from the CDK Settlement Class.

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14. If I Did Not Exclude Myself, Can I Sue CDK for the Same Thing Later?

    No. Unless you excluded yourself as described in Question 13, you gave up any right to sue CDK for the claims being released in this litigation, as described in Question 11.

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15. If I Excluded Myself from the CDK Settlement Class, Can I Get Money from the CDK Settlement?

    No. If you excluded yourself, you will not be eligible to receive a payment from the CDK Settlement.

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    OBJECTING TO THE SETTLEMENT, THE FEE AND EXPENSE APPLICATION AND/OR THE ALLOCATION PLAN

16. How Do I Object to the CDK Settlement, the Fee and Expense Application and/or the Allocation Plan?

    The deadline to file an objection to the CDK Settlement was November 7, 2024 and has passed. It is now too late to object to the CDK Settlement.

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    THE LAWYERS REPRESENTING YOU

17. Do I Have a Lawyer Representing Me in this Case?

    Yes. The Court has appointed Milberg Coleman Bryson Phillips Grossman, PLLC as Lead Counsel for the CDK Settlement Class and Bellavia Blatt, P.C., Gustafson Gluek PLLC, Robbins Geller Rudman & Dowd LLP and Clifford Law Offices, P.C. as Class Counsel. If you wish to remain a member of the CDK Settlement Class, you do not need to hire your own lawyer because Class Counsel is working on your behalf. See Question 25 for specific contact information for Class Counsel. You will not be charged for contacting Class Counsel. However, if you wish to pursue your own case against CDK separate from this one, or if you exclude yourself from the CDK Settlement Class, these firms will no longer represent you. You will need to hire your own lawyer if you wish to pursue your own lawsuit against CDK.

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18. How Will the Lawyers be Paid?

    At the February 25, 2025 Fairness Hearing, the Court approved (1) attorneys’ fees, equal to 33% of the combined $100 million CDK Settlement Fund and $29.25 million Reynolds Settlement Fund, together with a proportional share of interest earned on such funds through the date of payment to Dealership Class Lead Counsel; (2) Litigation Expenses totaling $7,192,133.86; and (3) service awards of $10,000 for each of the twenty-three (23) Class Representatives in this case. Of the total Litigation Expenses and service awards to Class Representatives, 5% was paid from the Reynolds Settlement, and 95% was paid from the CDK Settlement. You will not be responsible for paying Class Counsel directly. Dealership Class Counsel may also seek reimbursement of additional limited expenses related to this Settlement and settlement administration. Notwithstanding the foregoing, CDK is not liable for any amount above the $100 million plus up to $250,000 for notice and administration costs as described above.

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    THE COURT’S FAIRNESS HEARING

19. When and Where Will the Court Decide Whether to Approve the CDK Settlement and the Fee and Expense Application?

    The Court held a “Fairness Hearing” to decide whether to approve the CDK Settlement, the Fee and Expense Application, and the Allocation Plan at 10:00 a.m. CT on February 25, 2025 at the United States District Court for the Northern District of Illinois, 219 South Dearborn Street, Chicago, IL 60604. There were no objections.

    On February 25, 2025, the Court approved the CDK Settlement, Fee and Expense Application, and the Allocation Plan.

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20. Do I Have to Attend the Hearing?

    The Fairness Hearing was held on February 25, 2025 and the Court approved the CDK Settlement, Fee and Expense Application, and the Allocation Plan.

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21. May I Speak at the Hearing?

    The Fairness Hearing was held on February 25, 2025 and the Court approved the CDK Settlement, Fee and Expense Application, and the Allocation Plan.

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    THE REYNOLDS SETTLEMENT (2019)

22. Who is a Class Member in the Settlement with Reynolds?

    The Court directed, for the purposes of the Reynolds Settlement only, that everyone who fits the following description is a Reynolds Settlement Class Member:

    All persons and entities located in the United States engaged in the business of the retail sale of automobiles who purchased DMSs 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.

    The deadline for exclusion from or objection to the Reynolds Settlement has passed. If you meet the above description and did not exclude yourself from the Reynolds Settlement back in 2019, you are a member of the Reynolds Settlement Class.

    The Reynolds Settlement Class does not include:

    Defendants in this litigation (CDK and Reynolds), including any entity or division in which any Defendant has a controlling interest, as well as Defendants’ joint ventures, subsidiaries, affiliates, assigns, and successors.

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23. What Does the Reynolds Settlement Provide?

    Reynolds paid $29.5 million for the benefit of the Reynolds Settlement Class. This $29.5 million Settlement Fund, net of any fees and expenses allowed by the Court, will be distributed to Reynolds Settlement Class Members who submit valid Claim Forms.

    For more information on the terms of the Reynolds Settlement, the Reynolds Settlement Agreement is available here.

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    MORE INFORMATION

24. How Do I Get the Status of My Claim?

    The Settlement Administrator is in the process of reviewing claims for validity.

    Claims with missing information were sent a Notice of Incomplete Claim via email on June 20, 2025.

    If you filed a claim and have not received this Notice of Incomplete Claim, your claim is either already approved or has been denied.

    Denied claims will be notified of their status via email on or about June 30, 2025.

    Approved claims will be notified of their status at a later date.

    If you have not received either a Notice of Incomplete Claim or a Notice of Denied Claim, you may email the Settlement Administrator to request the status of your claim. When sending your request, please be sure to include the confirmation number which was provided if you filed your claim online, or your complete mailing address provided when your claim was filed.

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25. When Will I Receive My Payment

    Once the Settlement Administrator makes a final determination on all claims, Class Counsel will file a motion to distribute funds with the Court. Settlement Payments to approved claims can only be made after this motion is approved. Class Counsel expects to file their motion no later than October 2025, with a possible distribution before the end of the 2025 calendar year.

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26. How Do I Get More Information?

    These FAQs are intended to provide information about the CDK Settlement, the distribution of the prior Reynolds Settlement, the Fee and Expense Application, the Allocation Plan, and your legal rights and options. These FAQs are only a summary of the CDK and Reynolds Settlements and are qualified in their entirety by the terms of the respective Settlement Agreements. You can find the Settlement Agreements, other important documents, and information about the litigation by clicking here.

    PLEASE DO NOT CONTACT THE COURT REGARDING THESE FAQs. PLEASE DIRECT ANY INQUIRIES TO THE COUNSEL LISTED BELOW.

    Peggy J. Wedgworth Milberg Coleman Bryson Phillips Grossman, PLLC 405 East 50th Street New York, NY 10022 pwedgworth@milberg.com

    Leonard A. Bellavia Bellavia Blatt, PC 200 Old Country Road, Suite 400 Mineola, NY 11501 lbellavia@dealerlaw.com

    OR TO THE SETTLEMENT ADMINISTRATOR, EPIQ
    

     Email Us:

    info@DealershipClassDMSSettlement.com

     Call Us:

    1-888-842-3161 1-888-842-3161 (Toll-Free) (Recorded Information Only)

     Write Us:

    DMS Antitrust Litigation
    P.O. Box 6727
    Portland, OR 97228-6727

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