Advance Auto Parts Officers and Directors Under Investigation for False Statements

Schubert Jonckheer & Kolbe LLP is investigating potential shareholder derivative claims against certain officers and directors of Advance Auto Parts, Inc. (NYSE: AAP) for possible breaches of fiduciary duty related to the company’s allegedly false and misleading statements about its financial performance.

The firm’s investigation relates to allegations in a securities class action pending against the company in the U.S. District Court for the District of Delaware (Case No. 1:18-cv-00212-RGA). The securities class action alleges that certain officers of the company made false and misleading statements beginning in November 2016, in which they published guidance for the company’s 2017 financial performance that they knew was unattainable and which directly contradicted internal forecasts. On August 15, 2017, the officers finally rescinded the false guidance and the stock price plummeted, losing more than 20% of its value in a single day.

On February 7, 2020, U.S. District Judge Richard G. Andrews denied Advance Auto Parts’ motion to dismiss the securities complaint, in part, finding that the complaint adequately alleged that the company and its officers violated federal securities laws. Judge Andrews determined that the complaint stated a claim that some of the company’s projections “lacked a reasonable basis due to an inadequate methodology.”

We are investigating potential derivative claims based on harm the company has suffered as a result of possible breaches of fiduciary duty by the company’s officers and directors concerning their statements about the company’s financial performance.

If you currently own stock in Advance Auto Parts and wish to obtain additional information about shareholder derivative claims and your legal rights, please complete the form below for a free legal consultation.