Advance Auto Parts Leaders Sued Over Biggest Selloff in Decades

Advance Auto Parts Inc.’s directors and former executives gave investors the false impression that a strategic pricing initiative would only have positive impacts on its business before the stock’s biggest selloff in more than 20 years of trading, a shareholder derivative complaint says.

Board members and ex-officers allegedly issued disclosures misrepresenting the financial issues Advance Auto Parts was facing for more than six months, which provided an overly optimistic perception of the company’s operations and the efficacy of price reductions, according to the complaint filed Wednesday in US District Court for the Eastern District of North Carolina.

The auto ...