LKQ Corporation (LKQ) said its $2.1 billion Uni-Select acquisition, which included FinishMaster, would drive growth and protect market share. Executives touted strong synergies and described the deal as presenting “minimal integration risk.” But according to a recently filed complaint, FinishMaster was allegedly losing major customers and market share, with competitors later undercutting LKQ on price.
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A securities lawsuit filed on April 22, 2026, in the United States District Court for the Middle District of Tennessee alleges that LKQ Corporation and three of its current and former senior executives made materially false and misleading statements about the acquisition and integration of FinishMaster, a U.S. automotive paint distribution business.
Investors who bought LKQ Corporation shares between February 27, 2023, and July 23, 2025, may have suffered losses tied to what the complaint describes as a campaign of misleading statements about a major acquisition gone wrong. According to the complaint, those alleged misstatements artificially inflated LKQ’s stock price during the class period. The complaint identifies four corrective disclosure events during which LKQ’s share price declined: approximately 14.9% on April 23, 2024; approximately 12.4% on July 25, 2024; approximately 11.6% on April 24, 2025; and approximately 17.8% on July 24, 2025.
If you purchased LKQ shares during the class period and suffered losses, you may wish to learn more about your legal options.
LKQ’s Business and the Uni-Select Acquisition
LKQ Corporation is a global distributor of alternative collision replacement parts, recycled engines, and other vehicle components used in automobile repair. Headquartered in Antioch, Tennessee, the company’s common stock trades on the Nasdaq under the ticker symbol “LKQ.”
In February 2023, LKQ announced a definitive agreement to acquire competitor Uni-Select Incorporated for approximately $2.1 billion. The deal included Uni-Select’s U.S. subsidiary, FinishMaster, which operated approximately 200 locations offering automotive refinish and painting services and accounted for roughly 40% of Uni-Select’s annual revenue. The acquisition closed in August 2023, and LKQ then began integrating FinishMaster into its North American wholesale operations.
What the Lawsuit Alleges About LKQ’s Disclosures
The lawsuit centers on whether LKQ and its executives made false and misleading statements about the health and trajectory of the FinishMaster business throughout the class period. The complaint alleges that FinishMaster had been losing significant customers and market share beginning before the acquisition even closed, and that these losses worsened as LKQ integrated the business into its operations. Despite this, the complaint alleges that the defendants repeatedly assured investors that the integration was succeeding and generating growing synergies.
The plaintiff, City of Miami General Employees’ and Sanitation Employees’ Retirement Trust, alleges that defendants concealed this deteriorating reality from the market, causing LKQ shares to trade at artificially inflated prices during the class period. Investors who followed this case may find it significant that the company’s own disclosures in October 2024 acknowledged that customer losses at FinishMaster began “pre-acquisition or pre-closing and leading into post-acquisition.”
Investors interested in following developments in this case are encouraged to monitor further court filings and learn more about what has been alleged.
What LKQ Executives Allegedly Said
According to the complaint, LKQ’s executives made a series of optimistic statements about the Uni-Select acquisition and FinishMaster integration across earnings calls, SEC filings, and press releases throughout the class period. In February 2023, then-CEO Dominick Zarcone stated there were “very significant financial benefits” expected to accompany the acquisition, and the company described the deal as having “minimal integration risk.”
After the acquisition closed, defendant Zarcone characterized the deal on an October 2023 earnings call as a “bespoke and highly synergistic opportunity” that would “further widen the competitive moat around our North American business.” In February 2024, current CEO Justin Jude stated that the integration was “ahead of schedule” and that LKQ was “confident in our ability to exceed the $55 million of synergies previously disclosed,” which was later increased to $65 million. As recently as February 2025, Jude told investors that the North American team had delivered the integration “faster than expected” and with “a higher level of synergies than originally planned.”
How the Alleged Truth Came to Light
The complaint describes a series of disclosures through which the alleged truth emerged over more than a year. On April 23, 2024, LKQ lowered its revenue and earnings guidance for fiscal 2024, attributing the reduction to slowing demand and warmer weather affecting its North American segment. That same day, the company announced that CEO Zarcone was departing, and LKQ’s share price fell by $7.28 per share, or 14.9%.
On July 25, 2024, LKQ reported second-quarter earnings that missed its own reduced revenue targets and again lowered full-year guidance, resulting in a $5.53, or 12.4%, decline in the share price. On October 24, 2024, the company disclosed that FinishMaster had been losing significant customers beginning “pre-acquisition or pre-closing and leading into post-acquisition,” while also reassuring investors that the business had “stabilized.”
Then on April 24, 2025, LKQ reported that its North American segment missed quarterly revenue targets by approximately $200 million and missed adjusted EBITDA margin targets by $24 million, resulting in a year-over-year margin decline of 9% and a share price drop of $4.87, or 11.6%. On July 24, 2025, LKQ reported continued margin deterioration, missing EBITDA targets by approximately $20 million with an 11% year-over-year decline, and acknowledged that the losses were predominantly driven by competitors undercutting LKQ on price. The stock fell another $6.88 per share, or 17.8%.
Why These Allegations Matter for Shareholders
The lawsuit contends that investors who purchased LKQ shares during the class period paid artificially inflated prices because defendants allegedly failed to disclose that FinishMaster was losing customers and market share from the time the acquisition was announced. As those alleged misstatements were corrected through a series of disclosures between April 2024 and July 2025, LKQ’s stock declined substantially on each occasion. The four disclosure-day stock drops identified in the complaint total more than $24 per share.
The complaint also points to CEO Zarcone’s departure shortly before additional disclosures about FinishMaster’s customer losses. It further alleges that Zarcone sold more than $14 million of his personally held LKQ shares during the class period. The plaintiff contends these facts are relevant to the case.
The Legal Framework Behind the Claims
The complaint brings two counts under the federal securities laws. The first alleges violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, which prohibit fraudulent schemes, material misstatements, and misleading omissions in connection with the purchase or sale of securities. The second count alleges violations of Section 20(a) of the Exchange Act against the individual defendants, Jude, Galloway, and Zarcone, on the theory that, as senior executives, they had the power and authority to control LKQ’s public statements and are therefore liable as controlling persons.
Investors who purchased LKQ shares during the class period and wish to understand their rights under the federal securities laws are encouraged to seek more information about this case.
About Levi & Korsinsky, LLP
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