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BREAKING: Dealer Files Class Action Against Reynolds, CDK

October 20, 2017 0 Comments

Teterboro Chrysler Dodge Jeep Ram yesterday filed an antitrust class action lawsuit against Reynolds and Reynolds and CDK Global.

A Reynolds and Reynolds client, Teterboro alleges that the two DMS companies “allocated market share, reduced competition, fixed and raised prices for dealer management system services” as well as for “data and extraction and services secondary market” from January 1, 2011 up until the present.

CDK-Reynolds-Dealership-Class-Action-Lawsuit-AntitrustThis is hardly the first lawsuit Reynolds and CDK have faced, though it is the first dealer class-action lawsuit against them. Reynolds and CDK have recently faced lawsuits filed by MVSC, Authenticom, SIS, and CRMSuite.

DrivingSales New previously reported on the Authenticom lawsuit. Currently, that suit is waiting on a ruling from the federal appeals court in Chicago, to determine whether to stay the injunction that was issued earlier this year.

In August, Superior Integrated Solutions (SIS) brought suit against Reynolds, alleging anti-competitive practices. SIS became the third dealer vendor to sue Reynolds since February, when Motor Vehicle Software Corporation (MVSC) brought its antitrust action.

The Federal Trade Commission opened an investigation months ago into a “potentially illegal” contract from 2015 signed by Reynolds and CDK “regarding data integration practices.” Some vendors affected by the contract have received subpoenas from the FTC over the past few weeks, and dealerships that currently use Reynolds or CDK are expected to receive subpoenas, as well.



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