Appeals court stays injunction against Reynolds and Reynolds

TY GREENLEES / STAFF

TY GREENLEES / STAFF

An appeals court Tuesday stayed a preliminary injunction against Kettering-based Reynolds and Reynolds, giving it and a similar company a brief victory in an ongoing legal battle.

Authenticom Inc. is suing Kettering’s Reynolds and Reynolds and Illinois-based CDK Global LLC for access to data integration services those two companies offer automobile dealers nationwide.

Authenticom argued that Reynolds and CDK can put it out of business by blocking it from databases crucial to its business, creating what it called “a duopoly in the dealership data integration market.”

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Authenticom says it is trying to offer data integration services to auto dealers and vendors without having its access to data blocked.

In a ruling last month, a federal court granted Authenticom’s motion for a preliminary injunction against Reynolds and CDK.

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The U.S. Court of Appeals for the Seventh Circuit in Chicago stayed that injunction Tuesday. The court also ordered Reynolds and CDK to submit legal briefs by Aug. 22, with a brief from Authenticom due by Sept. 5.

Thomas Schwartz, a spokesman for Reynolds and Reynolds, said the company disagreed with the preliminary injunction.

“Now we look forward to presenting our case to the Court of Appeals, the Circuit Court,” he said. “It gives us a chance to make our case before the Seventh Circuit, yes, which is the opportunity we were looking for.”

A spokesman for CDK declined to comment on the recent order. A message seeking comment was sent to a spokesman for Authenticom.

Authenticom, based in La Crosse, Wisc., is a privately owned company which provides data management services for car retailers nationally.

Reynolds, a provider of software and management products and services for auto dealers, has about 1,300 employees in a County Line Road campus near the Kettering-Beavercreek border.

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