#United States #New York #Levi & Korsinsky #Securities Class Action #LKQ Corporation

Important Alert for LKQ Corporation Investors

Levi & Korsinsky, LLP has issued a vital reminder for investors of LKQ Corporation (NASDAQ: LKQ) regarding an ongoing securities class action. This lawsuit names three senior executives from the company and highlights substantial financial losses incurred by shareholders, urging them to act before the deadline on June 22, 2026.

Class Action Overview

The class period for this action spans from February 27, 2023, to July 23, 2025. During this time, shareholders experienced significant per-share losses—more than $24 in total. Notably, stock value saw drastic declines due to corrective disclosures, including drops by amounts such as $7.28, $5.53, and $6.88 per share. Investors filing for lead plaintiff status must do so by the deadline to participate in any potential recovery.

The lawsuit primarily targets three individuals:

• - Dominick P. Zarcone, former CEO, who led the company during a controversial acquisition yet left before a disappointing quarterly report.
• - Justin Jude, current CEO, who had previously claimed positive integration outcomes while the company was allegedly losing major clients.
• - Rick Galloway, CFO, accused of providing misleading financial information throughout the class period.

The Allegations: Who is Responsible?

According to the lawsuit, these executive officers are subjected to liability under Section 20(a) of the Securities Exchange Act of 1934. This section holds individuals accountable if they controlled a company that breached securities laws. The complaint argues that these officers had significant control over LKQ's SEC filings and public communications while failing to disclose critical non-public information regarding customer losses, especially concerning the FinishMaster acquisition.

Sarbanes-Oxley Act Compliance

Furthermore, under the Sarbanes-Oxley Act, the executives are accused of certifying the accuracy of quarterly and annual SEC filings despite knowing that projections were unrealistic due to significant customer attrition. The lawsuit asserts that such certifications were made while the executives recklessly ignored warning signs regarding the company's failing performance and deteriorating market share prospects.

Understanding Scienter in this Context

The lawsuit has positioned allegations of scienter, which, in legal jargon, refers to the knowledge of wrongdoing. Evidence is cited from October 2024 when LKQ admitted customer losses preceded the acquisition—a crucial detail allegedly obscured from investors by Zarcone.

Frequently Asked Questions

Who are the Defendants?

The class action names LKQ Corporation alongside Dominick P. Zarcone, Justin Jude, and Rick Galloway—each having signed SEC filings and made public statements within the specified class period.

What is the Deadline for Lead Plaintiff Application?

Investors wishing to apply for lead plaintiff status must meet the deadline set for June 22, 2026. This matter only concerns those seeking the lead role; other class members can still participate without action before this date.

Can You Still Recover Losses If You Sold Your Shares?

Yes, recovery eligibility is based on your purchase date of shares, not their current holdings. Investors who've sold LKQ shares within the class period may still file for potential recovery of their losses.

What are the Costs to Participate?

There are no fees associated with participating in the class action. It operates on a contingency fee basis, meaning no upfront payments are required.

Do Class Members Need to Attend Court?

Typically, class members do not need to appear in court or give testimonies. Instead, they can submit a claim form to receive their part of any recovery settled.

If you're an investor in LKQ Corporation, it's critical to monitor any developments pertaining to this class action lawsuit closely. Ensure you're prepared to meet deadlines and potentially recover losses impacted by the company's decisions during the specified timeline. For additional assistance, consider contacting Levi & Korsinsky, LLP at (212) 363-7500 for guidance regarding your investment recovery options.