SEC reaches settlement with Navistar International over misleading investors
The Securities and Exchange Commission on Thursday settled charges with Navistar International Corp for allegedly misleading investors about its development of an advanced technology truck engine that could be certified to meet U.S. emission standards. The company agreed to pay a $7.5 million penalty without admitting or denying the charges. Separately, the SEC filed charges against former Navistar CEO Daniel C. Ustian for aiding and abetting the company in misleading investors in this matter. That action is pending. In a June 4, 2012 meeting, EPA staff told Navistar that it had serious concerns about its application for certification of the engine and the next day informed Navistar in writing that the engine as currently designed was "unlikely" to be certified. Despite this, Navistar's June 2012 quarterly filing and conference call suggested that Navistar was unaware of any concerns by the EPA regarding the May 2012 application - one of several misstatements in the filing and call regarding the application.
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