CDK Global Automotive Dealer Software Antitrust Litigation
Case Overview
CDK Global and Reynolds and Reynolds together control the vast majority of the dealer management system (DMS) market used by U.S. automotive dealerships. Beginning around 2015, the two companies allegedly entered into a secret agreement to block independent data integrators from accessing dealer data, forcing dealers to use only the defendants' own — and far more expensive — integration services. Dealerships, repair shops, and automotive vendors filed a consolidated MDL complaint in the Northern District of Illinois, arguing the arrangement constituted a per se illegal horizontal restraint of trade under the Sherman Antitrust Act.
After years of contentious litigation, CDK Global reached a $100 million settlement with the dealer and vendor class in 2022, while Reynolds and Reynolds settled separately for undisclosed terms. The settlements resolved claims that the scheme artificially inflated software and data integration fees across the industry, costs that were ultimately borne by car buyers. The CDK settlement fund was distributed to eligible dealerships and third-party vendors who paid overcharges during the class period from 2013 through the settlement date.
Who May Qualify
U.S. automotive dealerships, independent repair facilities, and third-party software vendors that paid CDK Global or Reynolds and Reynolds for DMS or data integration services between approximately 2013 and 2022.
Frequently Asked Questions
Did auto dealerships win their antitrust lawsuit against CDK Global?
Yes. CDK Global agreed to pay $100 million to settle antitrust claims brought by a class of dealerships and vendors. Reynolds and Reynolds also reached a separate settlement. Both companies denied wrongdoing as part of the agreements.
How did the CDK Global antitrust scheme affect car buyers?
Plaintiffs argued that artificially inflated dealer software costs were passed down the supply chain and ultimately raised the cost of vehicle purchases and repairs for consumers, though the direct class members in the lawsuit were dealerships and vendors rather than individual car buyers.
Can I still file a claim in the CDK Global antitrust settlement?
The claims deadline for the CDK Global class settlement has passed. Eligible dealerships and vendors were required to submit claims during the court-approved claims period in 2022–2023.