AGOURA HILLS, Calif., Feb. 7, 2017 /PRNewswire/ -- Motor Vehicle Software Corporation ("MVSC") – a provider of electronic vehicle registration and titling services ("EVR") – announced today that it has filed an antitrust lawsuit in federal court in Los Angeles, CA, against CDK Global, Inc. (NASDAQ: CDK) ("CDK"), The Reynolds and Reynolds Company ("Reynolds"), and Computerized Vehicle Registration, Inc. ("CVR") (collectively, the "Defendants").
The lawsuit alleges that CDK and Reynolds – with the participation of CVR, their wholly owned joint venture and a competitor to MVSC in the Illinois and California EVR markets – have entered into an illegal conspiracy to block MVSC from participating in their data access programs (the 3PA and RCI programs, respectively). Access to DMS data is necessary for companies like MVSC to provide EVR services to their auto dealer clients. But, as the lawsuit alleges, the Defendants conspired to block MVSC from accessing the necessary DMS data in order to shield CVR from competition with MVSC. As a result of Defendants' actions, the lawsuit alleges that CVR has been able to maintain a monopoly position over the Illinois EVR market and is attempting to monopolize the California EVR market.
MVSC CEO Don Armstrong said, "As the lawsuit makes clear, we have made every effort to participate in the third-party vendor programs operated by CDK and Reynolds. Yet each time we approached these DMS companies, we were denied entry into their programs. Our goal has been, and remains, to participate in the DMS providers' standard third-party vendor programs at the prices they advertise. With full and timely participation, we will be able to unleash a new wave of innovation in the EVR market for the benefit of our dealer clients and the millions of consumers they serve. We are simply looking to level the playing field and foster true competition by eliminating monopolies and closed programs."
In the lawsuit, MVSC claims that Defendants' conduct violates federal and state antitrust laws, the California Unfair Competition Law, and the Illinois Consumer Fraud and Deceptive Business Practices Act. MVSC seeks a permanent injunction barring Defendants from continuing their unlawful conduct. The lawsuit also seeks an injunction allowing MVSC to participate in CDK's and Reynolds' third-party programs on reasonable, non-discriminatory terms.
"MVSC remains the most advanced, fastest growing, and secure provider in the EVR market," Mr. Armstrong added. "We are also the only provider to achieve SOC 1, 2, and 3 certification standards for data security. By seeking to have CDK and Reynolds adhere to fair business practices and allow MVSC to fully participate in the DMS ecosystems, auto dealers and consumers alike will benefit from the innovation, enhanced security, and increased competition we bring to the market."
A COPY OF THE COMPLAINT IS AVAILABLE AT THE FOLLOWING MVSC WEBSITE: http://img.dmvdesk.com/crm/MVSC%20Complaint%20(Filed).pdf
MVSC is represented in this matter by the law firm of Kellogg, Huber, Hansen, Todd, Evans & Figel, P.L.L.C., of Washington, D.C.
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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SOURCE Motor Vehicle Software Corporation