CDK Global, a leading provider of automotive retail software and dealer management systems (DMS), has been involved in several major lawsuits in 2025, primarily focusing on antitrust claims, cyberattacks, and allegations of unfair competition related to access and control of dealership data. These lawsuits address critical issues regarding data accessibility in the automotive industry, vendor relationships, and business conduct in an increasingly digitalized marketplace. This article delves into the background, allegations, legal frameworks, impacts, current developments, and guidance for stakeholders concerning the CDK lawsuits.
Background of the CDK Lawsuits
CDK Global has a dominant position in the automotive DMS market, with software systems used by approximately 15,000 dealerships across North America for managing sales, financing, inventory, service, and warranty operations. In recent years, CDK faced lawsuits by software vendors, dealerships, and a competitor, Tekion, accusing it of restricting access to dealership data and engaging in anti-competitive practices to maintain market dominance. Additionally, a significant ransomware cyberattack in mid-2024 disrupted CDK’s systems for several weeks, resulting in damages claims from dealerships.
Parties Involved
The plaintiffs include software vendors such as AutoLoop, multiple auto dealerships and repair shops, and the competitor platform Tekion. The defendant is CDK Global LLC, headquartered in Austin, Texas, owned by Brookfield Business Partners.
Key Allegations
- Antitrust Violations: Plaintiffs allege CDK artificially inflated prices by preventing fair access to dealer data for third-party vendors, stifling competition and innovation in the DMS market.
- Negligence and Breach of Contract: Following the 2024 ransomware attack, dealerships claim CDK failed to maintain adequate cybersecurity safeguards, leading to data breaches and operational disruptions.
- Cybersecurity and Unauthorized Data Access: CDK sued Tekion for allegedly orchestrating illicit cyber intrusions to extract confidential dealership data and entice customers to switch platforms.
- Unfair Competition: Accusations that CDK used aggressive tactics to block competitors and control customers’ data unfairly.
Legal Claims and Framework
- Sherman Antitrust Act: Addressing monopolistic practices and conspiracies to restrain trade.
- Negligence and Contract Law: Related to CDK’s duty to protect data and maintain contractual service obligations.
- Computer Fraud and Abuse Act (CFAA): Governing allegations of unauthorized computer system access.
- Unfair Competition Laws: Addressing deceptive and exclusionary business practices.
Impacts of Litigation
- Financial Settlements: CDK agreed to a $630 million settlement resolving antitrust claims by software vendors, with legal fees requested at over $200 million.
- Operational and Security Reforms: Litigation and cyberattacks have prompted scrutiny of CDK’s cybersecurity measures and data management policies.
- Industry Competition: The lawsuits challenge CDK’s market dominance and encourage innovation and open data access in automotive tech.
- Market Uncertainty: Ongoing litigation and reputational risks create uncertainty for dealerships and industry partners reliant on CDK’s software.
Current Status and Recent Developments
As of mid-2025, the $630 million antitrust settlement is pending final court approval, following a class certification of 243 software vendors. CDK’s motion to dismiss several negligence claims following the cyberattack is under judicial review, with hearings scheduled. The lawsuit against Tekion over alleged cyber hacking is active in federal court in San Francisco. Multiple claims from dealerships affected by the outage remain consolidated for litigation in Illinois. Some dealerships have opted for arbitration or dropped claims, but a class-action suit filed by dealership employees and customers continues.
Consumer and Business Advice
- Automotive Dealers and Vendors: Should closely monitor court developments and settlements, and review agreements with CDK to protect data and operational interests.
- Software Providers: Need clear contractual access rights and robust cybersecurity practices in agreements with platform providers.
- CDK and Competitors: Should pursue compliance, transparency, and innovation balancing proprietary interests with open marketplace dynamics.
- Legal Counsel: Important to advise clients on antitrust risks, data privacy obligations, and dispute resolution alternatives.
Conclusion
The CDK lawsuit saga exemplifies challenges at the intersection of technology, data control, and market competition in the automotive retail industry. These legal battles highlight pressing questions about digital ecosystem fairness, cybersecurity responsibilities, and corporate conduct shaping the future of automotive software services. The resolutions and reforms emerging from ongoing litigation promise to influence industry standards, consumer protections, and competitive innovation in the years ahead.
