If you invested in Advance Auto Parts and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses »

CLASS PERIOD
11/16/2022 - 05/30/2023

LEAD PLAINTIFF DEADLINE
12/08/2023

RELATED DOCUMENTS
Complaint 10/09/23

STOCK SYMBOL
NYSE: AAP

CONTACT
844-916-0895
AAP@hbsslaw.com

The complaint alleges that defendants made false and misleading statements and failed to disclose that Advance Auto Parts: 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; and 4) created the false impression that inflation and macroeconomic factors had an insubstantial impact on the Company's margins.

The truth emerged on May 31, 2023, when the company announced disappointing Q1 2023 financial results. While management had guided for operating margin improvements in 2023, management revealed that in Q1 the company’s operating margin shrank to 2.6%, whereas it had an operating margin of 6% in the prior-year period. Management blamed the poor profitability on the strategic pricing program.

In addition, Advance Auto Parts provided a dim outlook, particularly with respect to the Company’s anticipated earnings per share (“EPS”). Previously, management expected full-year EPS of $10.20 to $11.20. But with diminished sales and a strained operating margin, management revealed it now anticipates EPS of only $6.00 to $6.50.

Moreover, with profits falling, the company cut its quarterly dividend by 83% from $1.50 quarterly to $0.25.

On this news, Advance Auto Parts’ stock dropped $39.31 per share, or 35% in a single trading day.

AAP stock chart

If you invested in Advance Auto Parts and have significant losses, or have knowledge that may assist the firm’s investigation, submit your losses.

Whistleblowers: Persons with non-public information regarding Advance Auto Parts should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or AAP@hbsslaw.com.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the AAP securities class-action case about?

This lawsuit on behalf of investors nationwide alleges that defendants made false and misleading statements and failed to disclose that Advance Auto Parts: 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; and 4) created the false impression that inflation and macroeconomic factors had an insubstantial impact on the Company's margins.

WHAT SHOULD I DO?

I worked at AAP. What should I do?

If you were an employee of AAP during the period relevant to the class-action case, you may have valuable information that could be relevant to the lawsuit. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or AAP@hbsslaw.com.

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICPATE?

Am I affected? What do I need to do to participate?

If you were an investor in AAP during the relevant period specified in the class-action lawsuit, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any AAP investor participate?

In most class-action cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This class-action only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.

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