Lawsuits accuse Navistar execs of inflating stock price, violating SEC law

| April 09, 2013

Multiple class action lawsuits brought against International truck manufacturer Navistar International Corp. allege that the company artificially inflated its stock price by withholding information and misleading shareholders. One lawsuit in particular — originally reported on Overdrive sister site Successful Dealer — alleges that former Navistar CEO Dan Ustian and current Chief Financial Officer Andrew Cederoth both took advantage of the artificially high stock price by selling their shares for millions of dollars when the stock was near record high prices.

Navistar announced last September it would no longer be making its MaxxForce 15 engine and would instead offer the Cummins ISX15 as its 15-liter spec option.
Navistar announced last September it would no longer be making its MaxxForce 15 engine and would instead offer the Cummins ISX15 as its 15-liter spec option.

Successful Dealer‘s report says that Willie Briscoe, one of the attorneys bringing a class action lawsuit, says Navistar violated provisions of the Securities Exchange Act of 1934 and possibly violated state laws between Nov. 3, 2010, and Aug. 1, 2012.

Navistar’s stock reached $70.16 in April 2011 before plummeting nearly 70 percent to $21.44 per share in August 2012 after the company announced it was abandoning its EGR-only approach, discontinuing its MaxxForce 15 engine and partnering with Cummins to equip its 13-liter MaxxForce with Cummins’ SCR aftertreatment system.

That lawsuit is being brought on behalf of a construction worker’s pension fund who bought several thousand shares of Navistar stock and lost about $80,000 in doing so.

Click here to see Successful Dealer‘s full report.

  • http://www.facebook.com/john.m.baxter.5 John M. Baxter

    So typical! The decision to abandon EGR only and go with a combination of that and SCR is actually a sound and potentially profitable one, long term. If we stopped thinking short term and started thinking as we should, such a dip, which surely will be followed by a gradual but substantial rise, would not rile us up so much. International has been around for over 100 years (look up Cyrus McCormick and John Deering) and it will be around in another 100 years. Think about where the price is likely to be in 2113 instead of where it is just at this very moment.

  • kiko kika

    so you mean Mesilla valley transportation they selling there truck over price to owner operator no way they owned texas i mean paid texan come on now thre is no such thing like what they doing is honest all mexican employee are honest for you ask the management

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