LKQ Corporation (LKQ) Investigation

LKQ is a global distributor of vehicle products, including replacement parts, components and systems used in vehicle repairs and maintenance. Europe is one of three LKQ operating segments and accounted for 46% of the company’s total revenue during 2025.

The investigation’s focus is on the propriety of LKQ’s transparency about successfully implementing its ERP in Europe.

On April 30, 2026, when the company held its Q1 2026 earnings call, management said, “we executed a planned ERP migration in one of our key European markets, which was completed during the first week of April” and “we approached it with deliberate execution.” The price of LKQ shares slightly rose that day.

Three months later, investors learned more. On July 30, 2026, LKQ announced its results for Q2 2026 and revealed that its Europe business fell short because of problems with its ERP implementation in Germany. During the earnings call, management disclosed “the implementation created disruption” and “[t]he customer impact lingered longer[.]” Management nonetheless assured investors that “[t]he system performance has improved, and operational processes have normalized.”

The market quickly sent the price of LKQ shares down 14% the same day.

Then, on October 23, 2026, the company made a set of startling disclosures when it announced its Q3 2026 results.

1.  LKQ announced the departure of CEO Justin Jude.
2. The company reported a huge sequential variance in profitability – a net loss of $16 million, down from net income of $79 million the prior quarter (and compared with net income of $178 million in the prior year period).
3. LKQ laid the blame squarely on “underperformance in the Europe segment, including operational disruptions associated with the ERP implementation in Germany and volume declines in the United Kingdom and Benelux.”

The market’s reaction was severe, sending LKQ shares down 22%. In just three months, between July 29, 2026 and October 23, 2026, over $2.2 billion of the company’s market capitalization has been wiped out.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the LKQ investigation about?

We are focused on the potential disparity between LKQ’s assurances about the ERP migration versus what investors learned on October 23.

WHAT SHOULD I DO?

I worked at LKQ. What should I do?

If you were an employee of LKQ, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in LKQ, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any LKQ investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.