| COMPANY |
Advance Auto Parts, Inc. |
| COURT |
United States District Court for the Eastern District of North Carolina |
| CASE NUMBER |
23-cv-00563 |
| JUDGE |
The Hon. James C. Dever III |
| CLASS PERIOD |
November 16, 2022 through May 30, 2023 |
| SECURITY TYPE |
Securities |
Advance Auto investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than December 8, 2023 move the Court to serve as lead plaintiff of the class, if you so choose.
A class action lawsuit has been filed on behalf of those who purchased or acquired Advance Auto Parts, Inc. (“Advance Auto”) (NYSE: AAP) securities between November 16, 2022 and May 30, 2023, both dates inclusive (the “Class Period”).
Case Background:
On May 31, 2023, Advance Auto announced its financial results for the first quarter ended April 22, 2023. In the report, Advance Auto disclosed a 42% cut in its full-year earnings per share guidance for 2023, with its free cash flow expected to be $200M to $300M, down from “a minimum” of $400M stated previously. Additionally, Advance Auto indicated that in order “to enhance financial flexibility,” the company would decrease its quarterly dividend from $1.50/share to $0.25/share, an 83% drop after paying $1.50/share in each of the previous five quarters.
Following this news, Advance Auto’s stock price fell $39.31 per share, from $112.20 per share to $72.89 per share on May 31, 2023.
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements that: (1) misrepresented the efficacy of Advance Auto's strategic pricing initiative and the impact of price reductions; (2) omitted and/or concealed the negative impacts of the pricing initiative; (3) provided investors with an overly optimistic perception of Advance Auto's operations; and (4) created the false impression that inflation and macroeconomic factors had an insubstantial impact on Advance Auto's margins. When the true details entered the market, the lawsuit claims that investors suffered damages.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.