Navistar International Corp. has been charged by the Securities and Exchange
Commission on allegations that the company misled investors regarding
the development of an advanced technology engine.
According to the charges, Navistar did not admit to nor deny the claims
made by the SEC. However, they did reach a settlement to pay a penalty
of $7.5 million. In another, related case, the SEC charged Daniel C. Ustian,
the former CEO of Navistar for involvement with supposedly misleading
investors, as well as allegations of aiding and abetting Lisle’s
Navistar and Ustian are accused of concealing information regarding the
struggles regarding their ability to obtain certification from the Environmental
Protection Agency on their advanced technology truck engine. Instead,
they allegedly misled investors about meeting the standards of the EPA
Clean Air Act. The company later adopted the same technology their competitors use.
The Director of the SEC’s Division of Enforcement, Andrew J. Ceresney, said,
When public companies and top executives discuss important regulatory developments
with investors, they must tell the whole truth. Here, we allege that Navistar
and its former CEO misled investors about their dealings with the EPA
and the likely approval of its new emissions technology."
The SEC’s investigation determined that the violations took place
between 2011 and 2012.
If you were misled in making an investment, you may be able to recover
your losses. Call our securities fraud attorneys at Meyer Wilson today
to discuss your potential claim in a