U.S. court dismisses antitrust case against Reynolds and Reynolds following settlement

Jessica Thompson

Data integration service provider Authenticom’s antitrust lawsuit against dealership management system company Reynolds and Reynolds Co. was dismissed Friday after the parties settled their differences.

The dismissal came five years after Authenticom accused Reynolds and CDK Global, another DMS giant, of creating a duopoly in the dealership data integration market. A countersuit filed in 2018 by Reynolds was also dismissed, according to a May 27 filing in U.S. District Court for the Northern District of Illinois.

That filing said Authenticom and Reynolds had “settled their claims and counterclaims against each other.” Details of the settlement weren’t available, but the court document said both parties would be responsible for their own legal fees.

Both the Authenticom suit and Reynolds’ counterclaim were dismissed with prejudice, which means the cases are over and can’t be refiled.

Last week’s dismissals are the final step in years-long litigation between Authenticom and the DMS providers. Authenticom and CDK Global settled their case in November 2020, with CDK agreeing to make a one-time cash payment to Authenticom.

“We are very happy to be moving on with the business and putting this behind us,” Authenticom CEO Steve Cottrell told Automotive News Tuesday.

A Reynolds spokesman on Tuesday declined to comment.

After Authenticom sued CDK and Reynolds in 2017, other vendors and dealership groups also sued the DMS providers for antitrust violations, and some of the companies’ actions, including Authenticom’s, were centralized to a multidistrict litigation in the Northern District of Illinois.

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