Automotive Giant CDK Settles Antitrust Claims for $630 Million
Automotive technology giant CDK Global has agreed to settle antitrust claims for $630 million, resolving allegations that the company restricted access to dealership data, causing software vendors to overpay for it.
The proposed settlement, filed on Monday night in a federal court in Madison, Wisconsin, requires court approval. CDK denies any wrongdoing in agreeing to the settlement.
The case, certified as a class action in July, was brought by tech vendor AutoLoop, which accused CDK of cutting off access to auto dealer systems, resulting in higher prices for vendors seeking data for their apps.
The vendors initially sought damages of $490 million, which could have been tripled under antitrust law. The settlement includes 243 companies that purchased data integration services from CDK or rival Reynolds & Reynolds since October 2013.
Lawyers for the vendors hailed the settlement as extraordinary, saying it was the outcome of years of litigation. They plan to request $200 million in legal fees from the court.
In August, CDK agreed to pay $100 million to settle a separate class action by U.S. auto dealerships claiming overcharges for dealer management systems.