Problems for Stellantis in the United States. The Italian-French group has in fact been sued in the USA by its shareholders on charges of fraud and misrepresentation of certain information, followed by disappointing earnings that caused its stock price to plummet. The complaint filed Thursday in Manhattan federal court, Reuters reports, alleges that Stellantis artificially inflated its stock price for much of 2024 by making “extraordinarily positive” on inventory, pricing power, new products and operating margin.
Stellantis Sued
The data that raised all this fuss was released on July 25th and it was that of adjusted operating profit of the first half of the year: Stellantis has in fact declared that the latter fell by 40% to 8.46 billion euros, well below 8.85 billion euros expected by analysts. Obviously the Italian-French group is not having it and is talking about a meritless lawsuit brought against it: “The company intends to defend itself vigorously.”
Shareholders on the warpath?
CEO Carlos Tavares and CFO Natalie Knight have also been named in the dock. No surprises, however, according to Reuters, which explains how it is normal shareholders sue companies in the United States after an unexpected drop in stock price. In this specific case, the lawsuit filed against Stellantis is about unspecified damages to shareholders between February 15 and July 24, 2024.
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