⚖️ CDK Settles: Are You Eligible for a Payout?

In a recent approval by the Illinois federal courts, CDK Global, LLC has been given the green light to dish out $100M in order to resolve a class-action antitrust lawsuit.

If your dealership used CDK or Reynolds for DMS services anytime between September 2013 and August 2024, you're likely eligible for a payout.

Affected dealerships will likely receive formal notice of the settlement as early as this week and can start pursuing their claims.

Here’s what you need to know:

What’s This Lawsuit About Anyway?

The short version: U.S. auto dealerships are suing CDK Global, LLC and Reynolds and Reynolds in a class action lawsuit, accusing them of teaming up to overcharge for Dealer Management Systems (DMS) and Data Integration Services (DIS). 

The dealerships claim this violated federal antitrust laws.

CDK and Reynolds? They aren’t copping to anything.

Wait, Didn’t Reynolds Already Agree On A Settlement?

Yep, Reynolds agreed to a $29.5M settlement back in 2019 without admitting any wrongdoing.

But, CDK decided to fight it out. So, Reynolds’ funds were held in escrow until that case reached its conclusion.

Now, that CDK has agreed to a $100M settlement (right before their September trial was set to kick off), courts can begin the work of figuring out if this is fair and how to distribute the money.

Why’d They Settle?

Instead of rolling the dice at trial, CDK/Reynolds and the dealerships decided it made more sense to call it quits.

Both sides agreed this is a fair deal—basically, avoiding a long, expensive court battle and getting dealerships some cash back more quickly.

Am I Eligible for a Payout?

If you’re in the U.S., sell cars, and bought DMS from either CDK or Reynolds between September 1, 2013, and August 15, 2024, then congratulations—this settlement could mean cash in your pocket.

Here’s how it works:

• If you used a Reynolds or CDK DMS between January 1, 2015, and October 23, 2018, and didn’t opt out in 2019, you’re part of the Reynolds Settlement Class.

• If you used a Reynolds or CDK DMS between September 1, 2013, and August 15, 2024, and don’t exclude yourself by November 7, 2024, you’re part of the CDK Settlement Class.

If you used their services during both time periods? You’re in both settlement classes. Double the chance for payout, without the extra paperwork.

Do I Need to Sign Up with a Claims Recovery Service to Get Paid?

Nope, absolutely not. You don’t need to hire anyone to maximize your payout from the settlement. Dealership Class Counsel and the Settlement Administrator (Epiq) have got you covered—and guess what? It’s totally free.

If you get bombarded by ads or calls from claims recovery services offering to handle your claim for you, just know they aren’t endorsed by the Court. These non-party services are unnecessary. Filing on your own is a breeze, and the documentation required is minimal.

How Do I Claim My Cash?

There’s one claim form for both settlements, and you can find it here.

Just fill it out and file by the deadline — January 9, 2025. 

If the CDK settlement gets final approval, the funds will be split up according to the Allocation Plan, so you’ll need to file that claim to get a piece of both the CDK and Reynolds pies.

Rooftop Rule: If your dealership has multiple physical locations, each one needs its own Claim Form. That means three rooftops = three claims. But, if you’re selling cars from multiple OEMs under one roof, that counts as just one location (aka one claim).

Miss the deadline? No claim, no cash—but you’ll still be bound by the Court’s final decision, whether you like it or not.

What If I Want to Exclude Myself from the CDK Settlement Class?

Want out? You’ve got until November 7, 2024, to submit a written request to exclude yourself (aka: an “Exclusion Request”).

No, you can’t just call or email your way out of this one—it has to be an old-school, signed letter.

Remember: If you stay in the CDK Settlement Class, you’re giving up your right to sue CDK later for the same claims. If you opt out, no settlement money for you.

What Happens If I Do Nothing?

If you do nothing, you’re automatically in the CDK Settlement Class. That means you’ll be bound by the settlement and won’t be able to sue CDK later for anything related to this case.

But—heads up—you’ll still need to file a Claim Form to actually get any cash.

When Will the Court Make Their Final Decisions to Approve the Settlement?

The Fairness Hearing is set for 10:00AM CT on February 25, 2025, at the United States District Court in Chicago. That’s when the Court will review any objections and decide whether to approve the settlement, fees, and allocation plan.

You can attend, but you don’t have to—Class Counsel will handle the heavy lifting.

Do I Have to Attend the Hearing?

No, you’re not required to be there. But if you want to, you’re welcome to attend (at your own expense). The Court will still review your written objection if you’ve submitted one on time.

Can I Speak at the Hearing?

You can ask to speak, but you’ll need to send a letter by December 12, 2024, saying you intend to appear at the hearing.

You cannot speak if you’ve excluded yourself from the CDK Settlement.

Want More Info?

You can get all the gritty details, settlement agreements, and updates by checking out the official website.

If you want to talk with legal counsel, you can reach them here:

Class Counsel Hotline: 1-866-720-2594
(Weekdays from 09/23/2024 to 10/07/2024, 12:00pm – 4:00pm ET)

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