Securities Suit Claims Advance Auto Parts Hid Negative Sales Info from Investors [UPDATE]
by Erin Shaak
Last Updated on May 12, 2022
Wigginton v. Advance Auto Parts, Inc. et al
Filed: February 6, 2018 ◆§ 1:18cv212
Advance Auto Parts, Inc., along with its CEO and CFO, is facing a proposed class action lawsuit filed by an investor who claims the defendants published misleading statements concerning the company’s financial outlook.
Case Updates
May 12, 2022 – Plaintiff Seeks Final Approval of Advance Auto Parts Settlement
The plaintiff in the case detailed on this page has asked a federal judge for final approval of a $49.25 million settlement.
The deal, which received the judge’s preliminary approval in January, aims to provide a cash payment to anyone who purchased or otherwise acquired Advance Auto Parts common stock between November 14, 2016 and August 15, 2017 and held the stock until the company issued one of two corrective disclosures on May 24, 2017 or August 15, 2017.
The amount paid to each claimant will depend on several factors, including how many and when the shares were purchased.
The deadline for filing a claim is June 9, 2022. Click here to file a claim through the official settlement website, AAPSecuritiesLitigation.com.
In a May 9 brief, the plaintiff’s counsel noted that the settlement provides “substantial recovery” for stockholders given the significant risks they would face were the case to proceed to trial.
A final approval hearing has been scheduled for June 13, 2022. Only after the deal is approved and any appeals are resolved will claimants begin to receive their payments.
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Advance Auto Parts, Inc., along with its CEO and CFO, is facing a proposed class action lawsuit filed by an investor who claims the defendants published misleading statements concerning the company’s financial outlook and artificially inflated the price of its securities. The suit argues that Advance Auto and its top executives assured stockholders that the business was poised for success despite knowing a recent acquisition of General Parts International, Inc. and an increase in competition were lowering sales.
According to the complaint, the truth was revealed when the company reported negative financial results for the first two quarters of 2017, causing stock prices to drop and damaging investors.
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