Federal Court Denies CDK’s and Reynolds’ Motions to Dismiss

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MVSC Antitrust Lawsuit Will Now Proceed to Discovery

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"We are thrilled that the federal court recognized the merit of our claims."

Motor Vehicle Software Corporation (“MVSC”) – a provider of electronic vehicle registration and titling services (“EVR”) – is pleased to announce that the federal court in its antitrust lawsuit against CDK Global, Inc. (“CDK”) and The Reynolds and Reynolds Company (“Reynolds”) (collectively, the “Defendants”) has denied their motions to dismiss and the case will now proceed to discovery. See MVSC v. CDK Global, LLC, et al., Case No.: 2:17-cv-896 (C.D. Cal. Oct. 2, 2017).

In its complaint, MVSC alleged that CDK and Reynolds violated federal and state antitrust laws by conspiring to block MVSC from being able to access dealer data necessary for the provision of EVR services. Defendants filed a motion to dismiss MVSC’s claims, but on Monday, October 2nd, 2017, the federal court in its ruling held that MVSC’s “allegations of a horizontal agreement between CDK and Reynolds” are not just ‘conceivable,’ but are in fact ‘plausible.’” The Court therefore denied Defendants’ motions to dismiss and the case will proceed to discovery.

MVSC CEO Don Armstrong said, “We are thrilled that the federal court recognized the merit of our claims. We look forward to the discovery phase and vigorously prosecuting our case.”

In its complaint, MVSC also included claims for monopolization of the Illinois EVR market and attempted monopolization of the California EVR market, and included Defendants’ wholly-owned joint venture Computerized Vehicle Registration, Inc. (“CVR”) as a defendant. The court granted the motions to dismiss those monopolization claims, but did so without prejudice, holding that MVSC may file an amended complaint to address those claims. But in all events, MVSC’s lawsuit against CDK and Reynolds will now go forward.

MVSC is represented in this matter by the law firm of Kellogg, Hansen, Todd, Figel & Frederick, P.L.L.C., of Washington, D.C.

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About Motor Vehicle Software Corporation
Based in Southern California, MVSC is a Vehicle-to-Government (V2Gov) technology firm focused on developing innovative process management SaaS solutions, including electronic registration and titling platforms, in partnership with state government agencies and businesses across the United States. A public- private partner, MVSC’s groundbreaking technology and superior processes have transformed and driven market efficiencies since the company’s founding in 2005. Our products include DMVdesk, California’s No. 1 EVR provider; Vitu, the revolutionary new solution that executes registration and titling across multiple stores on one platform; and the Registration Management Professional (RMP) training program for new and experienced dealership personnel.

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David Thalberg
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