Firms file class action suits against Navistar
Navistar’s ill-fated EGR engine program has come back to haunt them, nearly six months after the truck maker scrubbed its initial plans in favor of a SCR engine partnership with Cummins.
Pennsylvania-based law firm Ryan & Maniskas, LLP and California-based firms Robbins Geller Rudman & Dowd LLP and Todd M. Garber have each filed class action lawsuits with the United States District Court for the Northern District of Illinois on behalf of purchasers of common stock of Navistar International Corporation during the period between Nov. 3, 2010 and Aug. 1, 2012.
The complaints allege that throughout the declared timeframe the company issued materially false and misleading statements regarding its business and financial prospects.
Navistar spokesperson Elissa Koc declined comment citing pending litigation.
Navistar reportedly pumped more than $700 million into its EGR program, which turned out engines that never met EPA emissions standards. Last summer, the company was forced to abandon its EGR program and announced plans to partner with Cummins.
Attorneys for Robbins Geller Rudman & Dowd LLP further allege corporate-level claims that the EGR program was working inflated the company’s stock and investor confidence before the stock and engine program each collapsed in the summer of last year.
The complaints also allege Navistar misrepresented and/or failed to disclose 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.