Advance Auto Parts, Inc.
|Company Name||Advance Auto Parts, Inc.|
|Class Period||November 16, 2022 to May 30, 2023|
|Lead Plaintiff Motion Deadline||December 08, 2023|
On May 31, 2023, Advance Auto Parts released its financial results for the first quarter of fiscal year 2023, revealing a net sales decrease of more than 1.6% compared to the previous year, and an operating margin rate “well below expectations due to higher than planned investments to narrow competitive price gaps in the professional sales channel as well as unfavorable product mix.” The Company also announced that it was lowering its full year 2023 guidance and cutting its quarterly dividend by 84%.
On this news, Advance Auto Parts’ stock price fell $39.31, or 35%, to close at $72.89 per share on May 31, 2023, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants made false and/or materially misleading statements because they: (1) misrepresented the efficacy of AAP’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 AAP’s operations; (4) created the false impression that inflation and macroeconomic factors had an insubstantial impact on the Company’s margins; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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