Another Class Action Alleges CDK Global, Reynolds and Reynolds Co. Fixed Market for Auto Dealer Data Systems
Last Updated on May 8, 2018
Massey Chrysler Center, Inc. et al. v. CDK Global, LLC et al.
Filed: January 25, 2018 ◆§ 2:18-cv-00042-GMB
CDK Global and the Reynolds and Reynolds Company face a second antitrust class action claiming they fixed prices for car dealerships' data management.
A second car dealership has filed an antitrust complaint against CDK Global, LLC and The Reynolds and Reynolds Company over allegations that the parties are behind a conspiracy to reduce competition and fix prices in the market for car dealerships’ data management systems (DMS).
The lawsuit explains a DMS is crucial to a car dealership’s operations in that it manages and tracks inventory, parts sales, customer information and even payroll, accounting and human resources details. Filed in Alabama, the proposed class action alleges the defendants have colluded to effectively lock auto dealers into long-term DMS contracts that sometimes last up to seven years. The terms for these deals, the complaint says, make it “inordinately difficult and expensive” for proposed class members to switch DMS providers.
The plaintiffs additionally allege the defendants’ competition-fixing conduct extends to the subsidiary data integration services (DIS) market, which applies to the data stored within auto dealers’ data management systems. The defendants, recognizing that dealers have a proprietary interest in their own information, aim to control said information by restricting access to integrators data that “extract, format, integrate, and organize data contained with DMS.”
“Both CDK and Reynolds have data integration products. The defendants misuse their control over dealers’ DMS data to dominate the DIS market,” the complaint asserts. “As evidenced by a written agreement, CDK and Reynolds conspired to cease competing with each other in order to bolster their own DIS products and to drive smaller data integrators from the DIS market.”
Hair Relaxer Lawsuits
Women who developed ovarian or uterine cancer after using hair relaxers such as Dark & Lovely and Motions may now have an opportunity to take legal action.
Read more here: Hair Relaxer Cancer Lawsuits
Stay Current
Sign Up For
Our Newsletter
New cases and investigations, settlement deadlines, and news straight to your inbox.
Before commenting, please review our comment policy.