||In re Advance Auto Parts, Inc. Securities Litigation
||United States District Court for the District of Delaware
||Honorable Richard G. Andrews
||Public Employees’ Retirement System of Mississippi (“MPERS”)
||Advance Auto Parts, Inc., Thomas R. Greco, and Thomas Okray
||November 14, 2016 through August 15, 2017, inclusive
This securities fraud class action case arises out of Defendants’ misrepresentations about their financial forecasts and guidance for fiscal year 2017. As alleged, prior to the Class Period, Defendant Advance Auto Parts struggled with lagging comparable store sales and operating margins. Under a new CEO and CFO (Defendants Thomas Greco and Thomas Okray, respectively), the Company announced an ambitious, optimistic transformation and told the market that it would achieve positive sales and margins in 2017—despite all internal projections continuing to point negative. During the Class Period, Defendants chose to double down and reaffirm their false guidance when presented with opportunities to modify it. When they finally admitted publicly that their promised success would never come to fruition, Defendants caused the Company’s stock price to plummet.
MPERS filed a 95-page Amended Complaint in January 2019 on behalf of a putative class of investors alleging that the Defendants violated Section 10(b) of the Securities and Exchange Act by making false and misleading statements about the Company’s fiscal year 2017 financial forecasts. In February 2020, Judge Andrews denied the vast majority of Defendants’ motion to dismiss. In November 2020, Judge Andrews certified the class. Defendants sought interlocutory review of the class certification order, but the 3d Circuit Court of Appeals denied review. Fact discovery is complete, with expert disclosures underway. The case is set for trial on April 4, 2022.