Stellantis is currently under fire from shareholders in the United States.

The leading automaker has been sued by U.S. shareholders, who claimed that Stellantis had "defrauded" them through the alleged concealment of rising inventories, Reuters reported Thursday.

The company allegedly posted "disappointing" earnings that led to its stock price nosedive.

The complaint, which was filed in Manhattan, Thursday, said that Stellantis artificially caused inflation in its stock price this 2024 by releasing "overly positive assessments" about its inventories, new releases, vehicle pricing and operating margin.

The revelation was exposed on July 25 according to shareholders. Stellantis had reportedly claimed that the adjusted operating income dropped to 40%, sustaining 8.46 billion euros ($9.28 billion). Analysts had initially expected a drop of 8.85 billion euros ($9.66 billion).

Stellantis released a brief statement through an email, saying that the lawsuit "is without merit" and that the company "will continue to defend itself." The automaker added that the adjusted operating income margin had declined below its double-digit target.

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In the two trading days after the accusations were announced, the listed shares in the United States fell $1.94, or 9.9%, to $17.66. The defendants involved in the issue also included Carlos Tavares, Chief Executive; and Natalie Knight, Chief Financial Officer.

The lawsuit also seeks unspecified damages for Stellantis shareholders that occurred between Feb. 15 and July 24.

When Reuters asked for a comment from a lawyer of the shareholders, no response was given. The Thursday lawsuit also led the company's shares to close to 1.7% at $15.84 in New York.

Last week, Stellantis laid off a total of 2,450 factory workers from its Detroit Warrant Truck assembly plant. The abrupt workforce cutdown was also accompanied by the closure of the company's Ram 1500 Classic truck production.

Stellantis has instead directed its focus on the Ram 1500 Tradesman truck, which is being produced at its Sterling Heights Assembly factory.

Meanwhile, the affected members of the United Auto Workers union will receive benefits such as transition assistance and healthcare coverage.

IN OTHER NEWS: Stellantis Cuts Off 2,450 Workers Following End of Classic Ram Truck Production  

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