Grabar Law Office has filed a putative class action on behalf of automobile dealerships against Defendants CDK Global, LLC and the Reynolds and Reynolds Company for unlawfully allocating markets and customers to monopolize and artificially raise (or stabilize) prices throughout the United States for: data management systems (“DMS”); the service of extracting, formatting, integrating, and organizing the data stored on DMS (“Data Integration Services”); and the service of business management applications (“Vendor Services”). Defendant’s anticompetitive scheme was accomplished by: agreeing not to compete against the Reynolds and Reynolds Company (“R&R”) for automobile dealership customers; forcing automobile dealership customers to work exclusively with either CDK or R&R to meet all “back office” needs; and acquiring or foreclosing independent competitors from the market. The net effect of CDK’s unlawful scheme was the creation of side-by-side data monopolies that raised prices to dealerships and downstream purchasers needing access to data to provide supplemental services to dealerships.
As alleged in the complaint, the conspiracy was and is a restraint of trade and an attempt to monopolize markets in violation of the Sherman Antitrust Act, 15 U.S.C. §§ 1 and 2. Plaintiff seeks to represent all automobile dealerships that, during the period from and including January 1, 2015 through the present (the “Class Period”), purchased DMS from CDK or R&R, and any current or former subsidiaries of CDK or R&R.
The case is Pensacola Motor Sales, Inc. d/b/a Bob Tyler Toyota, Inc. v. CDK Global, LLC and The Reynolds and Reynolds Company, 1:18-cv-01402 (N.D. Ill.).
If you believe that you were impacted by this alleged conspiracy and would like to learn more, contact us today.
