Important Information Regarding Section 20(a) Individual Liability Claims
NEW YORK, May 27, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP alerts investors in LKQ Corporation (NASDAQ: LKQ) of a pending securities class action naming three senior executives as individual defendants. Class Period: February 27, 2023 through July 23, 2025. Find out if you qualify to recover losses or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com | (212) 363-7500.
LKQ shareholders suffered cumulative per-share losses exceeding $24 across various corrective disclosures, including drops of $7.28, $5.53, $4.87, and $6.88 per share. The Court has set June 22, 2026 as the deadline to apply for lead plaintiff appointment.
The Named Individual Defendants
The securities class action filed in the United States District Court for the Middle District of Tennessee names three current and former LKQ officers as individual defendants under Section 20(a) of the Securities Exchange Act of 1934:
- Dominick P. Zarcone served as CEO from June 2017 through June 30, 2024, overseeing the $2.1 billion Uni-Select acquisition. Zarcone departed less than one month before LKQ reported a second consecutive quarter of disappointing results. The complaint alleges Zarcone sold over $14 million of personally held LKQ shares during the Class Period.
- Justin Jude became President and CEO in July 2024 after serving as Senior Vice President and President of LKQ's Wholesale North America segment since 2004. The complaint alleges Jude repeatedly assured investors the FinishMaster integration was generating "tremendous synergies" while the business was losing major customers.
- Rick Galloway has served as Senior Vice President and CFO since September 2022, responsible for the financial reporting and guidance that the lawsuit contends was materially misleading throughout the Class Period.
Section 20(a) Control Person Framework
Section 20(a) of the Exchange Act imposes liability on individuals who "controlled" an entity that violated Section 10(b). The action asserts that each Individual Defendant, by virtue of their executive positions, possessed the power to control LKQ's SEC filings, press releases, earnings call statements, and analyst presentations. Each had access to material non-public information regarding FinishMaster's customer losses, according to the pleading.
Sarbanes-Oxley Certification Obligations
Under Sections 302 and 906 of the Sarbanes-Oxley Act, the CEO and CFO personally certify the accuracy of quarterly and annual SEC filings. The complaint charges that these certifications were made while the officers knew or recklessly disregarded that:
- FinishMaster was losing major customers beginning before the acquisition closed
- Synergy projections of $55 million (later raised to $65 million) were unsupportable given ongoing customer attrition
- North American segment performance was deteriorating due to competitive pricing pressures, not merely "slow demand" or "warmer weather"
- Revenue and EBITDA margin targets were unachievable given the scope of market share erosion
"Corporate officers have a duty to ensure their companies' public statements are accurate and complete. When executives certify SEC filings under Sarbanes-Oxley, they accept personal responsibility for the truthfulness of those disclosures." -- Joseph E. Levi, Esq.
Speak with an attorney about recovering your LKQ investment losses or call (212) 363-7500.
Scienter Allegations Against the Individual Defendants
The lawsuit maintains that scienter is supported by LKQ's own October 2024 admission that FinishMaster customer losses began "pre-acquisition or pre-closing." Defendant Zarcone discussed FinishMaster customer base trends in October 2023, telling investors he had visibility "now that we've owned the business for a few months," yet allegedly omitted that key accounts were leaving. Zarcone's subsequent $14 million in personal stock sales and abrupt June 2024 departure further support the inference of knowledge, the complaint charges.
About Levi & Korsinsky, LLP
Levi & Korsinsky, LLP is a Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered.
Frequently Asked Questions About the LKQ Lawsuit
Q: Who are the defendants named in the LKQ lawsuit? A: The complaint names LKQ Corporation and individual defendants including Dominick P. Zarcone (former CEO), Justin Jude (current CEO), and Rick Galloway (CFO), each of whom signed SEC filings and made public statements during the Class Period.
Q: What is the LKQ lead plaintiff deadline? A: The deadline to apply for lead plaintiff appointment is June 22, 2026. This deadline applies only to investors seeking to serve as lead plaintiff. Class members who do not apply may still participate in any recovery without taking action before this date.
Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: What if I already sold my LKQ shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the Class Period and sold at a loss may still participate.
Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. You submit a claim form to receive your portion of recovery.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171
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SOURCE Levi & Korsinsky, LLP
