06:50 AM EDT, 08/16/2024 (MT Newswires) -- Stellantis NV ( STLA ) is facing a lawsuit by its shareholders in the US who blame the automaker for hiding increasing inventories and other problems that led to unexpectedly low earnings and a consequent decline in its stock price, Reuters reported Thursday.

Shareholders accused the company of artificially inflating its stock price most of this year by making "overwhelmingly positive" notions about inventories, pricing power, new products, and operating margin, the report said citing a complaint filed in Manhattan federal court on Thursday.

The company's shares dropped almost 10% in the two trading days after Stellantis ( STLA ) reported that its first-half adjusted operating income fell 40% to 8.46 billion euros ($9.28 billion), below the 8.85 billion euros expected by analysts.

Stellantis ( STLA ) said in an emailed statement to Reuters that the lawsuit does not hold merit and the company plans to "vigorously" defend itself.

The company did not immediately respond to MT Newswires' request for comment on the matter.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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