Advance Auto Parts Investor Sues Over Price Cuts, Revenue Loss

Advance Auto Parts Inc. touted its price-cutting initiatives, keeping its stock price inflated until a financial report in May showed the company’s revenue hadn’t covered product costs, an investor says in a proposed class action.

The retailer’s misrepresentations about the impact of its strategy led to a 35% stock drop on May 31, shareholder Brian Watson says in his complaint, filed Oct. 27 in the US District Court for the Eastern District of North Carolina.

Advance announced in November 2022 that it would cut prices, despite its CEO Thomas Greco’s recognition that “our research has consistently indicated that price is ...