Glancy Prongay & Murray LLP Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Advance Auto Parts (AAP)
News provided byGlancy Prongay & Murray LLP
Nov 21, 2023, 12:56 PM ET
LOS ANGELES, Nov. 21, 2023 (GLOBE NEWSWIRE) -- Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming December 8, 2023 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Advance Auto Parts (“AAP” or the “Company”) (NYSE: AAP) securities between November 16, 2022 and May 30, 2023, inclusive (the “Class Period”).
If you suffered a loss on your AAP investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/Advance-Auto-Parts-Inc-1/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at firstname.lastname@example.org to learn more about your rights.
On May 31, 2023, AAP held its quarterly earnings call for their 2023 First Quarter financial results. During that call, Advance Auto Parts’ CEO, and defendant Thomas R. Greco, conceded, “our financial results in the first quarter were well below expectations.” Because the Company slashed prices on products, Greco stated “we had less price realization than plans, which put substantially higher pressure on our product margin price.” Advance Auto Parts’ CFO and defendant Jeffrey W. Shepherd, revealed during the May call that the Company’s strategic pricing program resulted in the Company being “unable to price to cover product costs in the quarter.” The Company consequently revised downward its 2023 guidance to an operating margin of 5% to 5.3% from the previously announced 7.8% to 9.2% margin.
On this news, AAP’s share 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.
If you purchased or otherwise acquired AAP securities during the Class Period, you may move the Court no later than December 8, 2023 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to email@example.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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