LKQ Corp (NASDAQ: LKQ), an automotive aftermarket parts distributor, is now facing a securities fraud class action lawsuit.

The company is accused of concealing a crucial fact during its approximately $2.1 billion acquisition of Uni-Select and its subsidiary FinishMaster in 2023: that FinishMaster had already begun losing a significant number of customers prior to the acquisition, which allegedly caused substantial investor losses.

Legal Action Filed

The lawsuit has been filed in the relevant court and seeks to represent investors who purchased LKQ securities between February 27, 2023, and July 23, 2025.

The defendants, which include the company and certain executives, are charged with violating federal securities laws by making allegedly false and misleading statements concerning the risks of integrating the acquisition and the business condition of FinishMaster.

Alleged Misrepresentations

When announcing the deal in February 2023, LKQ told investors the transaction carried minimal integration risk and was expected to generate $55 million in cost synergies.

The complaint alleges, however, that FinishMaster was already losing major customers at the time of the announcement, a fact known to company management but not disclosed to the market.

Truth Emerges Gradually

The truth allegedly came to light through a series of corrective disclosures.

On April 23, 2024, LKQ lowered its fiscal 2024 performance guidance, causing its stock price to plunge 14.9%.

On July 25 of the same year, the company lowered guidance again, and the stock fell another 12.4%.

Further guidance cuts and revenue misses on April 24, 2025, and July 24, 2025, led to stock price declines of 11.6% and 17.8%, respectively.

It was not until October 2024 that the company first acknowledged FinishMaster had been losing customers since before the acquisition, a statement that directly contradicted its prior public assurances.

Financial Impact and Next Steps

As a result of these developments, LKQ's share price has fallen significantly from its 2023 highs, recently trading around $25.73 with a market capitalization of approximately $6.6 billion.

Several law firms have announced their involvement in the litigation, and the deadline for investors to apply to serve as lead plaintiff is June 22, 2026.