Dealers' #1 source for auto industry news, content, coaching & analysis

Legal expert Len Bellavia discusses CDK Global cyberattack and ongoing antitrust lawsuit

12 thousand franchised dealers are being represented in an existing nationwide class action lawsuit against CDK Global. Joining us now to tell us more about the lawsuit is the lawyer who spearheaded it, Len Bellavia, Founding Partner of the law firm of Bellavia Blatt also known as DealerLaw.com

Takeaways

  • Len Bellavia explained that his law firm initiated an antitrust lawsuit against CDK Global and Reynolds & Reynolds about seven years ago. The lawsuit was driven by dealer complaints regarding inflated costs and restricted access to their own data. The claim suggests that CDK and Reynolds colluded to eliminate competition, causing financial harm to dealers.
  • Bellavia highlighted that CDK’s defense in the antitrust case was the necessity of high fees for building a robust cybersecurity platform. However, the recent cyber-attack raises questions about the effectiveness and allocation of those funds. Dealers have expressed frustration over high costs without apparent corresponding security benefits.
  • In the aftermath of the cyber-attack, Belavia advised dealers to avoid rushing into legal actions against CDK. He emphasized the importance of focusing on immediate operational challenges, such as managing payroll and sales tax remittances. Belavia also noted that while dealers have sustained damages, it is premature to determine liability and seek legal redress without concrete evidence.
Check out our full coverage of the CDK cyberattack here.
"No lawyer or law firm out there should be advocating any type of legal action at this stage against CDK simply because it's a rush to judgment. We don't know if CDK did anything wrong here." - Len Bellavia

Stay up to date on exclusive content from CBT News by following us on Facebook, Twitter, Instagram and LinkedIn.

Don’t miss out! Subscribe to our free newsletter to receive all the latest news, insight and trends impacting the automotive industry.

CBT News is part of the JBF Business Media family.

CBT News
CBT News
For over 11 years, CBT News has been informing and helping automotive retail professionals grow their businesses and thrive in their careers through an awarding-winning, on-demand streaming platform. With exclusive interviews featuring the biggest names in the industry, daily newscasts, up-to-date market data, and exclusive articles covering the latest trends, CBT News is your #1 source for auto industry news and content.

Related Articles

Latest Articles

From our Publishing Partners