LKQ CORP 10-Q

Item 1. Legal Proceedings We are from time to time subject to various claims and lawsuits incidental to our business. In the opinion of management, currently outstanding claims and suits will not, individually or in the aggregate, have a material adverse effect on our financial position, results of operations or cash flows. There have been no material changes to the legal proceedings previously disclosed in our 2020 Form 10-K and Form 10-Q for the quarter ended March 31, 2021 other than as follows: In July 2021, (i) Region 3 of the U.S. Environmental Protection Agency ("EPA") initiated enforcement actions against eight of the Company's facilities by delivery of a Notice of Potential Violations and (ii) Region 4 of the EPA initiated enforcement actions against four of the Company's facilities by delivery of a Notice of Violation. The EPA has not communicated any potential penalty amounts that it may seek with respect to these facilities. We do not expect that any proposed penalty will have a material effect on our financial position, results of operations or cash flows. Item 1A. Risk Factors Our operations and financial results are subject to various risks and uncertainties that could adversely affect our business, financial condition and results of operations, and the trading price of our common stock. Please refer to our 2020 Form 10-K for information concerning risks and uncertainties that could negatively impact us.