Shareholders in the US have sued Stellantis, noting that the auto firm defrauded them by hiding rising inventories among other issues, prior to posting insipid earnings that led to a fall in the stock price, Reuters reported.
The complaint filed on Thursday in Manhattan federal court noted that the auto company artificially increased its stock price for most of 2024, by claiming “overwhelmingly positive” assessments about inventories, new products and operating margins, Reuters reported.
Shareholders further noted that the truth was revealed on July 25, when Stellantis noted that the first-half adjusted operating income dropped 40% to 8.46 billion euros. This was below the 8.85 billion euros that analysts had hoped for, the newswire reported.
The company also said that adjusted operating income margin had slipped below its double-digit full year target, Reuters further noted.
Setllantis was formed in 2021, post the amalgamation of Fiat Chrysler and France’s PSA. The company’s brands include Alfa Romeo, Citroen, Dodge, Jeep, Maserati, Opel, and Peugeot, among others.
The newswire further noted that it is common for stockholders to sue companies in America on unexpected stock price declines.
Thursday’s lawsuit seeks unspecified damages for Stellantis shareholders between Feb. 15 and July 24, 2024.
Reuters could not elicit a timely response from the lawyer representing the shareholders.