BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Advance Auto Parts (“AAP” or the “Company”) (NYSE: AAP) securities between November 16, 2022 and May 30, 2023, inclusive (the “Class Period”). AAP investors have until December 8, 2023 to file a lead plaintiff motion.
Investors suffering losses on their AAP investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to email@example.com.
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 closed 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; and (4) created the false impression that inflation and macroeconomic factors had an insubstantial impact on the Company’s margins.
If you purchased AAP securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.
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