Stellantis wins dismissal of shareholder lawsuit in US over 'channel stuffing'

NEW YORK, ‌March 13 (Reuters) - ​A ​U.S. judge on Friday dismissed a lawsuit ‌accusing the automaker Stellantis of ⁠defrauding shareholders by failing to disclose ‌how it overloaded ‌retailers with excessive inventory, known as channel stuffing, leading to ​short-term sales increases and long-term sales declines.

Stellantis, whose ⁠many brands include Chrysler, Dodge, Fiat, Jeep and ​Peugeot, was accused in the proposed class action of ​making false and ‌misleading statements about its pricing power, inventory and ⁠margins in light of the channel stuffing, inflating its share ⁠price.

U.S. District Judge Valerie Caproni in ​Manhattan concluded, however, that shareholders did not demonstrate a strong inference that ‌Stellantis was motivated to defraud them, or offer ‌strong circumstantial evidence of ⁠conscious misbehavior or ‌recklessness.

(Reporting by ​Jonathan Stempel in New York; Editing by Chris ‌Reese)

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