SAN DIEGO & ROANOKE, Va.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Advance Auto Parts, Inc. (NYSE: AAP) have filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 by the company's officers and directors between November 14, 2016 and August 15, 2017. Advance Auto provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks.
View this information on the law firm's Shareholder Rights Blog:
Advance Auto Accused of Concealing Negative Impact of its Acquisition
According to the complaint, on January 2, 2014, Advance Auto announced that it had acquired General Parts International, Inc., presenting the acquisition as a way for the company to better serve customers and deliver value to shareholders. Despite repeatedly issuing optimistic forecasts, Advance Auto was encountering significant inefficiencies in its supply chain and its sales were suffering from increased competition. On May 24, 2017, Advance Auto began to release disappointing financial and operational results, citing store sales declines. On August 15, 2017, Advance Auto again reported substandard results and predicted corresponding negative full-year fiscal 2017 guidance, including a decrease in its comparable store sales guidance from 0-2% growth to negative 3-1% decline, and a decrease in its adjusted operating income rate guidance from a 15-35 basis point year-over-year improvement to a 200-300 basis point year-over-year reduction. When Advance Auto began releasing poor results, the company's stock price plummeted, falling over 38% to close at $87.08 per share on August 15, 2017, and currently trades significantly below its class period high of $176.41.
Advance Auto Shareholders Have Legal Options
If you would like more information about your rights and potential remedies, contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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