Frequently Asked Questions
- What is this Lawsuit About?
- What is a Class Action and Who is Involved?
- Why is There a Settlement with CDK?
- Do I Need to Sign Up with a Claims Recovery Service to Get a Payment or Maximize My Recovery?
- Am I Part of the CDK Settlement Class?
- Can I be a Member of Both the CDK Settlement Class and the Reynolds Settlement Class?
- What Does the CDK Settlement Provide?
- How Can I File a Claim to Get a Payment from the Settlement Funds?
- 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?
- How Much Will I Receive in Payment from the Settlement Funds?
- What am I Giving Up by Staying in the CDK Settlement Class?
- What Happens if I Do Nothing at All?
- How Do I Exclude Myself from the CDK Settlement Class?
- If I Don’t Exclude Myself, Can I Sue CDK for the Same Thing Later?
- If I Exclude Myself from the CDK Settlement Class, Can I Get Money from the CDK Settlement?
- How Do I Object to the CDK Settlement, the Fee and Expense Application and/or the Allocation Plan?
- What is the Difference between Excluding Myself and Objecting?
- Do I Have a Lawyer Representing Me in this Case?
- How Will the Lawyers be Paid?
- When and Where Will the Court Decide Whether to Approve the CDK Settlement and the Fee and Expense Application?
- Do I Have to Attend the Hearing?
- May I Speak at the Hearing?
- Who is a Class Member in the Settlement with Reynolds?
- What Does the Reynolds Settlement Provide?
- How Do I Get More Information?
BASIC INFORMATION
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What is this Lawsuit About?
This lawsuit is a class action formally known as In re Dealer Management Systems Antitrust Litigation, MDL 2817, 18-cv-00864 (N.D. Ill.) and is pending in the United States District Court for the Northern District of Illinois before Judge Rebecca R. Pallmeyer (the “Court”).
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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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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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. If the Court approves the CDK Settlement, members of the CDK Settlement Class 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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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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Am I Part of the CDK Settlement Class?
The Court directed, for the purposes of the proposed 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.
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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
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What Does the CDK Settlement Provide?
If the CDK Settlement is approved, 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
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How Can I File a Claim to Get a Payment from the Settlement Funds?
If you do 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 CDK Settlement, the Fee and Expense Application, and 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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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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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
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What am I Giving Up by Staying in the CDK Settlement Class?
Unless you exclude 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 remain in the CDK Settlement Class, that means that, upon the “Effective Date,” you will release 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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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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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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If I Don’t Exclude Myself, Can I Sue CDK for the Same Thing Later?
No. Unless you exclude yourself as described in Question 13, you give up any right to sue CDK for the claims being released in this litigation, as described in Question 11. If you have a pending lawsuit against CDK, speak to your lawyer in that case immediately to determine whether you must exclude yourself from the CDK Settlement Class to continue your own lawsuit against CDK. Remember, the exclusion deadline is November 7, 2024.
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If I Exclude Myself from the CDK Settlement Class, Can I Get Money from the CDK Settlement?
No. If you exclude 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
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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.
If you are a CDK Settlement Class Member (and have not excluded yourself from the CDK Settlement), you can object to the Fee and Expense Application and/or the Allocation Plan. If you are a Reynolds Settlement Class Member (and have not excluded yourself from the Reynolds Settlement), you cannot object to the Reynolds Settlement as the deadline has passed, but you may object to the Fee and Expense Application and/or the Allocation Plan.
You may write to the Court setting out your objection. You may give reasons why you think the Court should not approve any or all of the Fee and Expense Application or any or all of the Allocation Plan. The Court will consider your views if you file a proper objection within the deadline identified, and according to the following procedures.
To object, you must send a signed letter stating that you object to the Fee and Expense Application and/or the Allocation Plan in the Dealership Class Action, In re Dealer Management Systems Antitrust Litigation. The written objection must include the following:
- the objector’s complete name, address, and telephone number, along with any trade names or business names used by the objector;
- a statement signed under penalty of perjury that the objector (if a member of the CDK and/or Reynolds Settlement Class) is a member of the CDK and/or Reynolds Settlement Class and objects to the Fee and Expense Application and/or the Allocation Plan in the Dealership Class Action, In re Dealer Management Systems Antitrust Litigation, MDL No. 2817, 18-cv-00864 (N.D. Ill.);
- all grounds for the objection and any supporting papers the objector wishes the Court to consider;
- the identity of all counsel who represent the objector;
- a statement confirming whether the objector or any counsel representing the objector intends to personally appear and/or testify at the Fairness Hearing; and
- the number of times in which the objector or the objector’s counsel (if any) has objected to a class settlement within the three years preceding the date that the objector files the objection and the caption of each case in which such objection was made.
When submitting your objection, if possible, please also include your Unique ID, which is located on the email or postcard notice you received.
The deadline to file an objection to the Fee and Expense and/or the Allocation Plan was December 12, 2024 and has now passed. It is now too late to object to the Fee and Expense and/or the Allocation Plan.
Any objection to the Fee and Expense and/or the Allocation Plan must have been filed with the Court on or before December 12, 2024 and served on counsel at the following addresses:
Court Dealership Class Lead Counsel Settling Defendant CDK’s Counsel Clerk of the Court
United States District Court for the Northern District of Illinois,
Eastern Division
Everett McKinley Dirksen
United States Courthouse
219 South Dearborn Street
Chicago, IL 60604Peggy J. Wedgworth
Milberg Coleman Bryson
Phillips Grossman, PLLC
405 East 50th Street
New York, NY 10022Katherine Katz
Kirkland & Ellis LLP
1301 Pennsylvania Ave., NW
Washington, DC 20004You do not need to go to the Fairness Hearing to have your written objection considered by the Court. At the hearing, members of the CDK Settlement Class may object to the CDK Settlement, and members of the CDK Settlement Class and/or the Reynolds Settlement Class may object to the Fee and Expense Application and/or the Allocation Plan. Any objector may appear in person or arrange, at that objector’s expense, for a lawyer to represent the objector at the hearing. If you or your attorney want to appear at the hearing, your objection must include your Notice of Intention to Appear (see Question 22).
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What is the Difference between Excluding Myself and Objecting?
If you exclude yourself from the CDK Settlement, you are telling the Court that you do not want to participate in the CDK Settlement. Therefore, you will not be eligible to receive any benefits from the CDK Settlement and you will not be able to object to the CDK Settlement.
Objecting simply means telling the Court that you do not like something about the CDK Settlement, the Fee and Expense Application and/or the Allocation Plan. You can object to the CDK Settlement only if you do not exclude yourself from the CDK Settlement Class. You can object to the Fee and Expense Application and/or the Allocation Plan only if you did not exclude yourself from both the CDK Settlement and the Reynolds Settlement.
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THE LAWYERS REPRESENTING YOU
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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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How Will the Lawyers be Paid?
Class Counsel will ask the Court for (1) attorneys’ fees, based on their services in this litigation, not to exceed 33.3% of the Settlement Funds plus (2) Litigation Expenses (including expert fees and deposition costs) not to exceed $7.5 million; and (3) service awards of up to $10,000 for each of the twenty-three (23) Class Representatives in this case. Any payment to the attorneys and Class Representatives will be subject to Court approval, and the Court may award less than the requested amount. Of the total Litigation Expenses and service awards to Class Representatives, 5% will be paid from the Reynolds Settlement, and 95% will be paid from the CDK Settlement. When the Fee and Expense Application is filed on November 27, 2024, a copy will be available on this website. 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
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When and Where Will the Court Decide Whether to Approve the CDK Settlement and the Fee and Expense Application?
The Court will hold 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. If there are objections, the Court will consider them. You may attend and you may ask to speak if you make a request as instructed in Question 22, but you do not have to. The Court may hear from those who have asked to speak at the hearing.
At or after the hearing, the Court will decide whether to approve the CDK Settlement, Fee and Expense Application, and the Allocation Plan. We do not know how long this decision will take. The Fairness Hearing may take place remotely, including via telephone or video conference. The Court may also move the Fairness Hearing to a later date without providing additional notice to the CDK and Reynolds Settlement Classes. Updates will be posted to this website regarding any changes to the hearing date or conduct of the Fairness Hearing.
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Do I Have to Attend the Hearing?
No. Class Counsel will answer any questions the Court may have at the Fairness Hearing. However, you are welcome to come at your own expense. If you send an objection, you do not have to come to Court to talk about it. As long as you filed or mailed your written objection on time, the Court will consider it. You may also hire your own lawyer at your own expense to attend the hearing on your behalf, but you are not required to do so.
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May I Speak at the Hearing?
You may ask to speak at the Fairness Hearing. To do so, you must send a letter saying that it is your “Notice of Intention to Appear in In re Dealership Management Systems Antitrust Litigation (Dealership Class Action).” Be sure to include your name, current mailing address, email address, telephone number, and signature. Your Notice of Intention to Appear must be postmarked no later than December 12, 2024, and it must be sent to the Clerk of the Court, Dealership Class Counsel, and CDK counsel at the addresses provided in Question 16. You cannot ask to speak at the hearing regarding the CDK Settlement if you excluded yourself from the CDK Settlement Class. You cannot ask to speak at the hearing regarding the Fee and Expense Application and/or Allocation Plan if you have excluded yourself from both the CDK and Reynolds Settlements.
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THE REYNOLDS SETTLEMENT (2019)
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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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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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GETTING MORE INFORMATION
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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
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P.O. Box 6727
Portland, OR 97228-6727