Navistar sued for allegedly misleading shareholders
Navistar abandoned its EGR-only approach to meeting federal emissions standards last September, but the company’s still feeling the pain of sticking with exhaust gas recirculation as long as it did, as three separate law firms have filed separate class action lawsuits on behalf of shareholders of the truck and engine maker.
The lawsuits allege that Navistar misled shareholders as to the prospects of its EGR-only engines and their ability to meet EPA standards and that the company artificially inflated its stock price based on those alleged deceptions.
The class action suits are for all purchasers of Navistar International Corporation common stock between Nov. 3, 2010, an Aug. 1, 2012.
Navistar was the only North American engine manufacturer that did not use selective catalytic reduction technology to meet 2010 emissions standards and instead aggressively stuck with EGR. However, the strategy essentially fell apart last summer, and Navistar partnered with Cummins to implement an SCR-based approach.
Navistar has declined to comment on the suits.
For more on this story and the lawsuits, see Overdrive sister site Successful Dealer‘s report.