Teterboro Chrysler-Jeep-Dodge-Ram, in Little Ferry, N.J., has filed a lawsuit seeking damages from Reynolds and Reynolds and CDK Global Inc., saying the software giants' anti-competitive behavior has driven up costs at the dealership.
The suit, which seeks class-action status, says a "conspiracy" between CDK and Reynolds since at least Jan. 1, 2011, to allocate market share and reduce competition resulted in the "fixing, raising and maintaining and/or stabilizing prices for the provision" of dealership management systems and data integration services. CDK and Reynolds control more than 70 percent of the DMS market.
Reynolds declined to comment on the latest lawsuit. CDK denied the accusations.
"The claims are meritless and amount to a rehashing of those already made. We remain committed to protecting our property rights and those of third parties on our systems, and will mount a vigorous defense," a CDK Global spokesman wrote in an emailed statement to Automotive News. "We strongly believe that our policy of not allowing unauthorized intermediaries onto our systems is the best way to preserve the integrity of those systems and the security of our customers' data."