The dealer software antitrust lawsuit ended in two settlements totaling $129.5 million. Reynolds paid $29.5 million and CDK Global paid $100 million to resolve claims by U.S. auto dealerships.
A Dealer Management System, or DMS, is software dealerships use for inventory, sales, service, and accounting. The case is In re Dealer Management Systems Antitrust Litigation, MDL 2817, No. 18-cv-00864, before Judge Rebecca Pallmeyer in the Northern District of Illinois, according to the settlement administrator's FAQ.
Official resources:
- Read the original report from Milberg — Use this primary source to review the complete report.
- Explore the official data from Q4Cdn — Use this primary source to review the underlying data.
Table of Contents
- Which dealerships were included?
- What did dealerships allege?
- How much did each defendant pay?
- How were dealer payments set?
- Where does the case stand now?
Which dealerships were included?
The settlement class covered U.S.-based retail auto dealerships that bought DMS service from CDK and/or Reynolds. The purchase period ran from Sept. 1, 2013 through Aug. 15, 2024.
Dealerships that opted out were not included. The New Jersey Coalition of Automotive Retailers described the same class definition in its settlement notice. Coverage required a direct DMS purchase during the period, not indirect use. A dealership with stores using different systems could have qualifying months under both. Eligibility came down to three checks:.
- U.S.-based retail auto dealership
- Paid for CDK or Reynolds DMS between Sept. 1, 2013 and Aug. 15, 2024
- Did not opt out of the settlement class
What did dealerships allege?
Dealership plaintiffs alleged CDK Global and Reynolds and Reynolds conspired over pricing. The alleged conduct involved Dealer Management System Services and Data Integration Services. Dealership class counsel described those two markets in its Sept. 23, 2024 press release.
Data integration means moving dealership data between DMS software and outside applications. Dealerships said the alleged agreement produced unlawful prices for those services. The claim focused on what dealers paid, not on vehicle prices. CDK denies any wrongdoing. Milberg reported that the court has not ruled that CDK violated any law, and the settlement resolved the dispute without an admission of liability.
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How much did each defendant pay?
Reynolds settled first for $29.5 million, finally approved on Jan. 23, 2019. CDK later settled for $100 million, plus $250,000 for notice costs, finally approved on Feb. 25, 2025. Together the funds total $129.5 million, according to the court's June 1, 2026 order.
The two funds were handled under one claim process. Dealers filed a single claim form covering both settlements. That structure avoided separate filings for the Reynolds and CDK funds. The court awarded 33% of the combined funds in attorneys' fees, according to the settlement administrator. It also awarded $7,192,133.86 in expenses and $10,000 service awards to each of 23 class representatives.
How were dealer payments set?
Eligible dealers receive cash payments tied to the number of months they paid for DMS service. Fox Rothschild described this month-count method in its December 2024 alert. More paid months meant a larger share under the court-approved allocation plan. The plan did not pay a flat amount per dealership.
A store that used CDK for 40 months would count differently than one that used Reynolds for 10 months. Dealers with both systems during the period could count qualifying months for each. The formula divides net funds after fees, costs, and awards. That means individual checks depend on total valid months filed, not only on a dealer's own bill. Longer customers gain more weight, but every valid claim dilutes the per-month value.
Where does the case stand now?
The deadline to submit the single claim form was Jan. 10, 2025, and it has passed. Only timely filers can receive a distribution.
The case is now awaiting court-approved distribution, according to the official settlement homepage. Dealers who filed should keep payment information current with the administrator. Dealers who missed the deadline cannot file late and still share in these funds. Watch the settlement site for the distribution order and payment dates.
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