LKQ Corporation Securities Class Action Lawsuit - Investors With Losses May Contact Levi & Korsinsky

Levi & Korsinsky, LLP reminds purchasers of LKQ Corporation (NASDAQ: LKQ) securities of a pending securities class action.

THE CASE: A class action seeks to recover damages for investors who purchased LKQ securities between February 27, 2023 and July 23, 2025.

YOUR OPTIONS: You may be entitled to compensation without payment of any out-of-pocket fees. See if you can recover losses or contact Joseph E. Levi, Esq. at [e-mail] or [phone].

LKQ's Wholesale North America segment missed revenue targets by approximately $200 million and EBITDA margin targets by $24 million, the complaint alleges. Across multiple corrective disclosures, shares suffered cumulative per-share declines of $7.28, $5.53, $4.87, and $6.88. The lead plaintiff deadline is June 22, 2026.

How an Automotive Parts Distributor Allegedly Lost the Customers It Paid $2.1 Billion to Acquire

The lawsuit contends that FinishMaster, which operated approximately 200 locations across the United States and represented roughly 40% of Uni-Select's annual revenue, was the centerpiece of LKQ's growth strategy in the North American automotive paint segment. Yet the filing states that competitors were systematically undercutting LKQ on price, pulling major accounts away from FinishMaster before, during, and after the integration.

Alleged FinishMaster Customer Attrition by the Numbers

The action claims the operational damage was extensive and measurable:

• FinishMaster customer losses began "pre-acquisition or pre-closing," meaning LKQ acquired a deteriorating business
• Competitors captured market share by consistently undercutting LKQ on pricing throughout the integration period
• The Wholesale North America segment suffered a 9% year-over-year EBITDA decline by April 2025
• By July 2025, the segment's margin deterioration deepened to an 11% year-over-year EBITDA decline
• EBITDA targets were missed by $24 million in April 2025 and another $20 million in July 2025
• Revenue shortfalls reached approximately $200 million against management's own targets

The Competitive Pricing Pressure LKQ Allegedly Failed to Disclose

As detailed in the action, LKQ's rivals in the North American automotive paint market did not sit idle while LKQ consolidated FinishMaster locations. The complaint recounts that competitors aggressively pursued FinishMaster's client base with lower pricing, a dynamic that management allegedly knew about but concealed from shareholders. Instead of disclosing this competitive threat, management attributed declining performance to "slow demand" and "warmer weather" reducing auto repair volumes, as set forth in the complaint.

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