Top 10 of 2013: Navistar execs in hot water
The sixth most popular Successful Dealer article of 2013 comes to us from the courtroom.
In April, Navistar’s former Chief Executive Dan Ustian and the company’s then-chief financial officer, Andrew Cederoth, were named in a class action lawsuit against the company according to a filing with United States District Court for the Northern District of Illinois.
The lawsuit was filed on behalf of Construction Workers Pension Trust Fund Lake – County and Vicinity and “others similar situated” who bought company shares between Nov. 3, 2010 and Aug. 1, 2012. The suit claims the pension’s trust fund purchased 6,709 shares of Navistar stock for a total of roughly $246,000 and sold them for about $165,000 as stock prices tumbled following Navistar abandoning plans to produce a big bore EGR engine.
The complaints allege the defendants made numerous misrepresentations, including that (1) Navistar’s attempted methods to achieve compliance with EPA guidelines in truck manufacturing had failed and Navistar would be forced to revise its plan to meet guidelines, incurring enormous costs to the company; (2) Navistar did not have engines ready to meet the 2010 EPA standards; and (3) Navistar’s filings with the Securities and Exchange Commission contained incomplete and misleading disclosures, including statements about the costs of recalls and details of various debts.
Cederoth stepped down from his post in June.
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