NEW YORK, Feb. 16, 2018 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Advance Auto Parts, Inc. ("Advance Auto Parts" or the "Company") (NYSE: AAP) of the April 9, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Advance Auto Parts stock or options between November 14, 2016 and August 15, 2017 and would like to discuss your legal rights, click here: www.faruqilaw.com/AAP. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the District of Delaware on behalf of all those who purchased Advance Auto Parts securities between November 14, 2016 and August 15, 2017 (the "Class Period"). The case, Wigginton v. Advance Auto Parts, Inc. et al., No. 1.18-cv-00212 was filed on February 6, 2018.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose or indicate: (1) integration issues surrounding the Company's Carquest acquisition resulted in systemic inefficiencies and cannibalization of sales; (2) increased competition was negatively impacting sales; and (3) as a result, the Company's statements about its business, operations and prospects were materially false and misleading and/or lacked a reasonable basis.
Specifically, on May 24, 2017, Advance Auto Parts reported disappointing first quarter fiscal 2017 financial and operational results. The Company reported a quarterly decrease in gross profit, "primarily driven by investments in the customer, inventory optimization efforts and supply chain expense deleverage due to the comparable store sales decline." Further, Advance Auto Parts reported that its quarterly comparable store sales had declined 2.7%. On this news, Advance Auto Parts' share price fell from $140.66 per share on May 23, 2017 to a closing price of $133.02 on May 24, 2017—a $7.64 or a 5.43% drop.
Then, on August 15, 2017, Advance Auto Parts reported disappointing second quarter fiscal 2017 financial and operational results. The Company disclosed, in part, that "[c]omparable store sales for the quarter were flat." On this news, Advance Auto Parts' share price fell from $109.32 per share on August 14, 2017 to a closing price of $87.08 on August 15, 2017—a $22.24 or a 20.34% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Advance Auto Parts' conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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