A few weeks ago, we announced that Stellantis shareholders in the United States had filed a complaint against the automotive group due to the sharp decline in profits recorded in the first half of 2024. Subsequently, Carlos Tavares, CEO of the group, had announced that the company was considering selling some of its brands due to negative performance, and among these, the names of Chrysler and Maserati emerged. Natalie Knight, CFO of Stellantis, had instead revealed the need to adopt “decisive actions to address operational challenges” in North America, the most challenging market for the automotive group. Now further details about the shareholders’ complaint are emerging.
Stellantis: Investors’ class action for profit decline after first half 2024 results
For the reasons described, Stellantis’ share price fell by 9.9%, or $1.94, harming investors. In the complaint, they stated that the automotive group disclosed false or misleading statements, avoiding disclosure of negative facts. In particular, Stellantis allegedly did not discuss with investors the company’s operational problems, lower-than-expected revenues, and activities not in their favor. Consequently, the positive statements by Stellantis executives substantially hid what was under the carpet. This situation has severely damaged investors.
Among the “decisive actions” taken by automotive group are further layoffs in the United States and the postponement of the reopening of the Belvidere plant, which caused the anger of the UAW union, accusing the group of violating the agreement reached in 2023.
Glancy Prongay & Murray LLP informs that investors who purchased or acquired Stellantis securities between February 15, 2024, and July 24, 2024, have until October 15, 2024, to participate in the class action against Stellantis. Interested parties can contact Charles Linehan of GPM, call the toll-free number 888-773-9224, or send an email to shares@glancylaw.com.