DENVER–(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 email@example.com.
Shuman Glenn & Stecker represents investors throughout the nation, concentrating its practice in stockholder litigation.