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 violations.
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 free consultation.