Cliff Banks - The Banks Report

Cox Automotive, CDK Settle Antitrust & Data Lawsuit

July 16, 2019 — Late last week, CDK Global and Cox Automotive and its subsidiaries informed the federal court in Illinois they have settled their lawsuits resulting from a long-standing dispute over access to data and how that data is used.

The settlement does not impact other parties involved in the multi-district litigation (MDL) that consolidated several lawsuits filed by dealers and other software vendors against CDK and Reynolds and Reynolds.

Details of the settlement were not disclosed.

Cox, along with several of its subsidiaries filed its lawsuit against CDK in December 2017. The suit followed similar litigation that year from data vendors Motor Vehicle Software Corp., Authenticom, and Superior Integrated Systems along with several dealers alleging CDK and Reynolds engaged in anti-competitive practices in how it provided third-party vendors access to dealership data. Other vendors have since joined the MDL.

Cox did not include Reynolds and Reynolds in its lawsuit. Reynolds and the dealers agreed to settle their differences in October 2018 for approximately $29.5 million.

The Cox/CDK settlement includes counterclaims filed by CDK in February of this year and resulted in both cases being dismissed with prejudice, meaning, neither side can file another suit using the same claims.

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