In a major legal development for the American auto dealership industry, CDK Global Inc. has agreed to a $129.5 million class action settlement stemming from allegations of anti-competitive practices in the dealership management software sector. The lawsuit, known as the Dealer Management Systems (DMS) Antitrust Litigation, claims that CDK Global and Reynolds & Reynolds entered into unlawful agreements that caused inflated software pricing for thousands of dealerships across the country.
This class action applies to car dealers who purchased DMS software from the aforementioned companies between September 1, 2013, and August 15, 2024. The lawsuit asserts that these companies engaged in collusive conduct, leading to a lack of market competition and price fixing. Although CDK Global has agreed to the settlement, Reynolds & Reynolds continues to deny all allegations and is not part of the current agreement.
$129.5M Dealer Management Systems Class Action Settlement 2025
The central issue in this class action is the use of Dealer Management Systems (DMS)—enterprise software platforms used by auto dealerships to manage core functions like inventory tracking, customer relationship management, accounting, vehicle sales, and repair operations. CDK Global and Reynolds & Reynolds are the two dominant providers.
According to the plaintiffs, these companies colluded to prevent new competitors from entering the market, and this artificial suppression of competition allegedly resulted in years of inflated prices for dealership clients. These practices, the lawsuit argues, violated federal antitrust and consumer protection laws, thereby causing financial harm to dealers who had little choice but to accept monopolistic pricing models.
Despite denying any wrongdoing, CDK has chosen to resolve the litigation by agreeing to pay $129.5 million, a move interpreted by many as an effort to avoid protracted legal proceedings.
Who Is Eligible for the DMS Settlement?
To be eligible for a share of this settlement, claimants must fulfill a series of clearly defined criteria. The claim process is not automatic, and it requires submission of documentation verifying eligibility.
- The business must be an auto dealership operating in the U.S.
- The dealership must have purchased or leased DMS software from CDK Global or Reynolds & Reynolds between 01/09/2013 and 15/08/2024.
- The dealer must provide contracts, billing statements, or other documents showing financial transactions during the claim period.
- The dealership must submit a claim form by January 9, 2025.
- Multiple locations under a single business name can file separate claims for each region.
This settlement is limited to commercial car dealerships, and independent mechanics, software resellers, or other related businesses are not considered part of the eligible class unless explicitly listed in the litigation documents.
Required Documentation for a Valid Claim
Claimants will be asked to present valid documents to substantiate their claim. This documentation will serve as proof that they are part of the class and that they suffered financial harm as outlined in the lawsuit.
- Master Service Agreements (MSAs)
- Service Level Agreements (SLAs)
- Itemized invoices and transaction receipts
- Software renewal or extension notices
- Digital or hard-copy contracts signed during the claim period
The settlement administrator has the discretion to request additional information if the documents provided are unclear or incomplete. Hence, it is advisable to be as thorough as possible during submission.
Breakdown of the Settlement Structure
The funds will be disbursed proportionately among eligible claimants based on how much each dealership paid, how long they were under contract, and how many total valid claims are received
| Aspect | Details |
|---|---|
| Total Settlement Fund | $129.5 Million |
| Responsible Entity (Settled) | CDK Global Inc. |
| Lawsuit Name | Dealer Management Systems Antitrust Lawsuit |
| Settlement Period | Sep 1, 2013 – Aug 15, 2024 |
| Deadline to Submit Claim | January 9, 2025 |
| Final Approval Hearing | February 25, 2025 |
| Settlement Type | Class Action (Antitrust) |
| Amount Disbursement | To Be Announced |
This settlement only includes CDK Global. A separate case involving Reynolds & Reynolds is still pending and may result in additional compensation if resolved similarly in the future.
Step-by-Step Guide: How to File Your Claim
Filing a claim under the DMS settlement is relatively straightforward, but accuracy is essential to avoid delays or disqualification.
- Visit the official claims portal listed in the court’s communication.
- Download or complete the online claim form by filling in all required business information.
- Upload or attach supporting documentation, including service agreements and payment history.
- Submit your claim before the January 9, 2025 deadline.
- Retain a copy of the submission confirmation for future reference.
Once reviewed and approved, payouts are expected to begin after the final court hearing in February 2025, with most checks likely to be distributed by mid-2025.
Key Legal Milestones & Dates
| Event | Date |
|---|---|
| Settlement Period | Sept 1, 2013 – Aug 15, 2024 |
| Last Day to File a Claim | January 9, 2025 |
| Deadline for Objections/Exclusions | November 7, 2024 |
| Final Approval Hearing | February 25, 2025 |
| Estimated Payment Distribution Begins | Mid-2025 (Tentative) |
Filing your claim well in advance is highly recommended, as the volume of submissions may increase closer to the deadline, slowing down processing times.
A Case That Highlights Fair Market Practice
The $129.5 million Dealer Management Systems Class Action Settlement is a landmark legal outcome aimed at protecting businesses from exploitative pricing and anti-competitive practices. While it doesn’t undo the financial pressure placed on car dealerships over the years, it offers a form of restitution for those who suffered from restricted competition in a vital software sector.
This case also reminds us of the importance of corporate accountability and the role of legal systems in upholding fair market dynamics. Auto dealerships affected by inflated DMS software pricing should take advantage of this opportunity to claim their rightful compensation and potentially recover some of their incurred losses.