Shuman Glenn & Stecker Investigates Advance Auto Parts, Inc.
March 25 2020 - 1:36PM
Business Wire
Shuman Glenn & Stecker announces that it is investigating
potential shareholder claims against certain officers and directors
of Advance Auto Parts, Inc. (“Advance Auto Parts” or the “Company”)
(NYSE: AAP). Advance Auto Parts sells automotive replacement parts
and accessories online and in stores across North America.
The Firm’s investigation relates to allegations in a class
action lawsuit filed against the Company and certain of its senior
officers in the U.S. District Court for the District of Delaware.
The lawsuit alleges that the Company’s Securities and Exchange
Commission filings were false and/or misleading and/or failed to
disclose that (i) integration issues surrounding the Company’s
acquisition of Carquest resulted in systemic inefficiencies and
cannibalization of sales; and (ii) increased competition was
negatively impacting sales. The Company’s senior officers also made
positive statements in press releases and earnings calls beginning
in 2016 and continuing into 2017. In a recent ruling denying the
Company’s motion to dismiss the lawsuit, the federal judge
determined that at least some of the Company’s projections “lacked
a reasonable basis,” because they ignored internal Company
forecasts that actually predicted negative growth for that
period.
The lawsuit further alleges that the allegedly false and
misleading statements by the Company and senior management led to
damages to the Company’s stock price. On May 24, 2017, the Company
reported a quarterly decrease in gross profit. On this news, the
Company’s share price fell from $140.66 per share to $133.02 per
share on May 24, a decline of 5%. On August 15, 2017, the Company
disclosed, in part, that “[c]omparable store sales for the quarter
were flat.” On this news, the Company’s share price fell from
$109.32 per share to $87.08 per share on August 15, a decline of
20%.
If you currently own Advance Auto Parts common stock and are
interested in discussing your rights, or have information relating
to this investigation, please contact Brett Stecker toll free at
(866) 569-4531 or email Mr. Stecker at brett@shumanlawfirm.com.
Shuman Glenn & Stecker represents investors throughout the
nation, concentrating its practice in stockholder litigation.
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version on businesswire.com: https://www.businesswire.com/news/home/20200325005616/en/
SHUMAN GLENN & STECKER Brett D. Stecker, Esq. 326 West
Lancaster Ave., Suite 110 Ardmore, PA 19003 Tel: 866.569.4531 Fax:
303.536.7849 Email: brett@shumanlawfirm.com Web:
www.shumanlawfirm.com
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