The lawsuit aims to obtain unspecified compensation for shareholders of Stellantis from February 15 to July 24, 2024.
In the United States, shareholders have filed a lawsuit against Stellantis, accusing the automaker of fraudulent activities that include concealing escalating inventories, among other discrepancies, which subsequently led to disappointing earnings and a resultant drop in stock value, as reported by Reuters.
The legal action, initiated on Thursday in a federal court in Manhattan, claims that Stellantis manipulated its stock price throughout most of 2024. The company allegedly provided overly optimistic reports concerning its inventories, new product launches, and operating margins. These factors, the shareholders contend, were misrepresented to artificially inflate the company’s stock value.
The truth emerged on July 25, when Stellantis disclosed a significant 40% reduction in its first-half adjusted operating income, which fell to 8.46 billion euros, not meeting the anticipated 8.85 billion euros forecast by analysts, according to the news agency. Additionally, the company revealed that its adjusted operating income margin had declined, failing to meet its own full-year double-digit target.
Stellantis, established in 2021 following the merger of Fiat Chrysler and France’s PSA, encompasses several well-known brands, including Alfa Romeo, Citroen, Dodge, Jeep, Maserati, Opel, and Peugeot.
It is noted that such lawsuits by shareholders are common in America following unexpected declines in stock prices. The lawsuit filed on Thursday seeks unspecified damages for Stellantis shareholders who were affected during the period from February 15 to July 24, 2024.
Attempts by Reuters to obtain a response from the attorney representing the shareholders did not yield any immediate feedback.
