After cyberattacks targeted one of the largest dealership management software (DMS) systems, resulting in extensive outages for thousands of U.S. and Canada dealerships, the company responsible for the product has announced plans to reinstate service this week. CDK encountered two cyberattacks commencing on June 19, leading to disruptions in over half of the auto dealerships in North America reliant on essential systems for service and sales operations. The hacking group, later identified as the Russian and Eastern European cybercrime group BlackSuit, demanded a ransom estimated in the tens of millions. CDK later confirmed its intention to pay the ransom in order to facilitate service restoration. CDK informed dealerships on Monday of its expectations to have the DMS operational again by July 3 or 4, while simultaneously facing legal challenges from some dealerships.
On Monday, CDK disclosed to Automotive News, “We are continuing our phased approach to the restoration process and are rapidly bringing dealers live on the Dealer Management System. We anticipate all dealers’ connections will be live by late Wednesday, July 3, or early morning Thursday, July 4.” Subsequently, four dealerships and two consumers from Florida and Georgia initiated a lawsuit against CDK, citing negligence in safeguarding users of its systems, both businesses and individuals, along with consumer data breaches.
The lawsuit, filed on June 30 in the U.S. Southern District of Florida, states, “This negligence has led to significant breaches affecting countless individuals… exposing sensitive information to cybercriminals and causing irreparable harm to the reputation and trust of the affected parties.” Plaintiffs in the legal action include Formula Sports Cars, Prestige Motor Car Imports, Chevrolet of Canton, Bill Holt Chevrolet of Blue Ridge stores, as well as consumers Alexis Pino and Annie Ortiz aiming to represent more dealers and consumers as part of a class-action case.
Despite facing other federal lawsuits from consumers seeking class-action status, CDK’s situation is further complicated by these ongoing legal challenges. This is the first instance where dealerships have been integrated in a lawsuit, according to Automotive News. (via tesla-news.com)
