Shareholders of a vehicle parts firm recently urged a law office to look into company decisions that may have violated federal securities laws. There is a potential for this to become a securities class action lawsuit in the future.
Law office Bronstein, Gewirtz and Grossman, LLC, noted it began an investigation of business leaders at LKQ Corporation. This was due to both officers and directors at the company potentially violating a number of laws related to securities.
LKQ Corporation had its stock slide to $29.46 per share on Jan. 15, 2014 from the previous level. This was a decline of 8.76 percent, for a dollar value of $2.83 per share. The reason for the decline was due to Prescience Point, a short-seller, releasing a report that outlined LKQ Corporation's potential revenue increase overstatement.
Additionally, the document also noted that some other aspects of the company's bookkeeping are not in good shape. This included potential issues with how it measures multiple financial issues such as gross margins, organic growth rate and inventory turnover.
It is possible for shareholders of the company's stock to talk with representatives of the law firm in order to gain more information on the case. Both Peretz Bronstein and Eitan Kimelman are available to field questions, and can be reached by email or telephone. Any stockholders who plan to send an email should not only leave their mailing address, but also telephone number.
Separate law firm announces separate investigation
Another law office recently said that it would be seeking answers to shareholders' questions regarding LKQ Corporation's business practices. This also may develop into a class action claim.
Specifically, LKQ Corporation allegedly violated the Securities Exchange Act of 1934's Sections 10(b) and 20(a). These violations were directly due to the aforementioned report from Prescience Point, which alerted shareholders to a potential issue.
This action by the law firm will further work to determine if there is a case from shareholders regarding the evidence in place to take the issue to court.
This law firm also welcomes shareholders to contact it in order to address some issues that may be in play. For more information, it may be a good idea to speak with Robert Willoughby, a member of the firm. He can be reached by either telephone or email.