- Advance Auto Parts, Inc. ("Advance Auto Parts," "AAP," or the "Company") (NYSE: AAP)
NEW YORK, Oct. 16, 2023 /PRNewswire/ -- The Advance Auto Parts investigation involves potentially false and/or misleading statements regarding: (1) the efficacy of Advance Auto Parts' strategic pricing initiative and the impact of price reductions; (ii) the negative impacts of the pricing initiative; (iii) overly optimistic perception of Advance Auto Parts' operations; and (iv) inflation and macroeconomic factors had an insubstantial impact on Advance Auto Parts' margins.
On May 31, 2023, Advance Auto Parts' CEO, defendant Thomas R. Greco, disclosed that the company's "financial results in the first quarter were well below expectations" and that because Advance Auto Parts lowered prices on products, it "had less price realization than plans, which put substantially higher pressure on our product margin rate." The Advance Auto Parts class action lawsuit also alleges that Advance Auto Parts' CFO, defendant Jeffrey W. Shepherd, revealed that the company's strategic pricing program resulted in Advance Auto Parts being "unable to price to cover product costs in the quarter." As a result, the Advance Auto Parts class action lawsuit alleges that the company revised downward its 2023 guidance to an operating margin of 5% to 5.3% from the previously announced 7.8% to 9.2% margins. On this news, the Advance Auto Parts class action lawsuit alleges that Advance Auto Parts' stock price declined approximately 35%.
If you purchased or otherwise acquired Advance Auto Parts, Inc. (NYSE: AAP) securities, even minimal shares, have information, or would like to learn more about this investigation, please contact Fletcher Moore by email at fmoore@moorekuehn.com.
Moore Kuehn PLLC is a New York-based plaintiffs' contingency law firm concentrating in shareholder derivative and consumer litigation. Additional information about the firm can be found at http://www.moorekuehn.com/ This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Moore Kuehn PLLC
Fletcher Moore, Esq.
(212) 709-8245
fmoore@moorekuehn.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/moore-kuehn-encourages-advance-auto-parts-inc-investors-to-contact-law-firm-301958158.html
SOURCE Moore Kuehn, PLLC
