Investigation Alert: Investors who hold shares of LKQ Corporation (NASDAQ: LKQ) should contact the Shareholders Foundation

An investigation was announced for long-term investors in shares of LKQ Corporation (NASDAQ: LKQ) concerning potential breaches of fiduciary duties by certain directors of LKQ Corporation.

Investors who are current long term investors in LKQ Corporation (NASDAQ: LKQ) shares, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The investigation by a law firm for current long term investors in NASDAQ: LKQ stocks follows a lawsuit filed against LKQ Corporation over alleged securities laws violations. The investigation on behalf of current long term investors in NASDAQ: LKQ stocks, concerns whether certain LKQ Corporation directors are liable in connection with the allegations made in that lawsuit.

LKQ Corporation (NASDAQ: LKQ) reported that its annual Total Revenue declined from over $13.82 billion in 2024 to over $13.65 billion in 2025, and that the Net Income declined from $666 million in 2024 to $596 million in 2025.

Antioch, TN based LKQ Corporation engages in the distribution of replacement parts, components, and systems used in the repair and maintenance of vehicles and specialty vehicle aftermarket products and accessories.

. In February 2023, LKQ Corporation announced plans to acquire its competitor Uni-Select, including Uni-Select's United States operating subsidiary, FinishMaster. FinishMaster offered automotive refinishing and painting services at approximately 200 locations throughout the United States, accounting for approximately 40% of Uni-Select's annual revenue. LKQ paid over $2 billion to acquire Uni-Select.
The claims against Defendants arise from misrepresentations related to LKQ's acquisition and integration of FinishMaster. Throughout the Class Period, LKQ repeatedly touted the benefits of the acquisition. For example, in announcing the acquisition in February 2023, LKQ represented that the acquisition was a "compelling strategic fit" to "enhance LKQ's business and drive profitable growth." LKQ also represented that the acquisition presented "minimal integration risk," including because "Uni-Select's FinishMaster business improves LKQ's scale and product mix to compete" in the North American automotive paint segment.

After completing the acquisition in August 2023, LKQ Corporation began to integrate FinishMaster into the Company's North American operating segment. LKQ and its executives touted the integration as a "highly synergistic opportunity" and "competitive moat" to protect LKQ against market share losses to AutoZone and other competitors. In reality, FinishMaster was losing major customers and market share, including the business of key multi-shop operator clients that were critical to FinishMaster's revenue.

Then on April 23, 2024, LKQ Corporation lowered the Company's financial guidance for the 2024 fiscal year. The Company attributed the reduction of its earnings projections to the worsening performance of its North American operations where FinishMaster was being integrated, but blamed slowing demand and warmer weather reducing the need for auto repairs. The Company also announced that CEO Dominick Zarcone, who oversaw the Uni-Select acquisition, was departing the Company.

On July 25, 2024, LKQ Corporation reported disappointing financial results for the second quarter of 2024. LKQ failed to meet the reduced revenue targets it set only one quarter earlier. The Company again blamed demand issues impacting the performance of its North American operations and further reduced its financial guidance for the 2024 fiscal year.

Then, on October 24, 2024, LKQ Corporation revealed that FinishMaster was, in fact, losing business, including major multi-shop operator customers that were migrating their business to LKQ's competitors. It revealed that these losses began "pre-acquisition or pre-closing and leading into post-acquisition." Additional information emerged on April 24, 2025, when LKQ reported that its Wholesale North America segment, where FinishMaster was now fully integrated, missed revenue targets by approximately $200 million. LKQ also reported that, contrary to its assurances that FinishMaster improved the Company's margins, the segment missed adjusted earnings before interest, taxes, depreciation, and amortization ("EBITDA") margin targets by $24 million and suffered a year-over-year decline of 9%. As a result of these disclosures, LKQ's share price declined by another $4.87 per share, or 11.6%.

Finally, on July 24, 2025, LKQ Corporation reported that the segment's margin performance continued to deteriorate due to competitors taking market share by undercutting LKQ on price. LKQ again missed EBITDA targets by approximately $20 million and suffered a year-over-year decline of 11%. The Company admitted that its earnings and margin declines were predominantly driven by business losses from increased competition from others in the industry.

According to that complaint filed in the U.S. District Court for the Middle District of Tennessee the plaintiff alleges that the defendants made false and/or misleading statements and/or failed to disclose that FinishMaster was losing major customers from the time the acquisition was announced and its business could not sustain, let alone grow, LKQ's eroding market share and that to the extent that LKQ purported to warn of the risks regarding the Uni-Select acquisition and FinishMaster integration, LKQ failed to disclose that such risks had already materialized and were negatively impacting LKQ's operational and financial performance.

Those who purchased shares of LKQ Corporation (NASDAQ: LKQ) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.