By Mike Scarcella
(Reuters) – Automotive Technology Giant CDK Global has agreed to pay $ 630 million to arrange antitrust claims that it ensures that hundreds of software suppliers pay too much for data on vehicle dealers by limiting access.
The proposed settlement, submitted on Monday evening to a federal court in Madison, Wisconsin, requires the approval of a judge.
The company denied some misconduct in the agreement to settle.
Austin, CDK in Texas, owned by Brookfield Business Partners, sells software platforms that car dealers use to lead their daily sales, financing and service companies.
Tech supplier Autoloop and other companies that are included in the settlement make apps for the management systems of the dealers for stock management, repair orders, guarantee services and other functions.
Autoloop suggested CDK in 2018, and accused it of cutting access to car dealers’ systems and increasing prices that suppliers pay to gain access to data for their apps. A judge certified the case as a class action in July.
CDK and lawyers for the company did not immediately respond to requests for comments.
The suppliers had indicated that they would request compensation of $ 490 million during a previously planned test for this week. A jury prize could have been tripled under the antitrust legislation.
The suppliers who have set the Class Action include 243 companies that have purchased data integration services from CDK or one of the rivals, Reynolds & Reynolds, which is not a suspect since October 2013.
Lawyers for Autoloop and other members of the Class Action in Kellogg, Hansen, Todd, Figel & Frederick called the settlement “Extraordinary” in a statement and said that it came from “years of hard -fought lawsuits”. They said they would ask the court for around $ 200 million in legal costs.
CDK agreed to pay $ 100 million in August to arrange a Class Action by American car dealers who claim that they have paid too much for the company’s dealer management systems.
(Reporting by Mike Scarcella; Edit by David Bario and Emelia Sithole-Matere)