Fleet Management News & Business Info | Commercial Carrier Journal
Issue link: http://read.uberflip.com/i/129328
journal leading news, trucking market conditions and industry analysis Navistar sued, accused of artificially inflating stock before EGR collapse E standards. Last summer, the company ven though truck and engine manufacturer Navistar abandoned announced plans to abandon its EGR program and partner with Cummins. its exhaust gas recirculation-only Attorneys for Robbins Geller Rudman quest to meet 2010 U.S. Environmental & Dowd LLP allege corporate-level Protection Agency emissions standards, claims that the EGR program was workthe company's not out of the woods yet ing inflated the company's stock and on dealing with the backlash. Three law investor confidence before the stock and firms in March filed three separate classengine program both collapsed in the action lawsuits on behalf of Navistar summer of last year. shareholders who purchased common One lawsuit in particular was filed on stock of Navistar International Corp. behalf of Construction Workers Pension between Nov. 3, 2010, and Aug. 1, 2012. Trust Fund Lake – County and Vicinity Moreover, Dan Ustian, Navistar's forand "others similar situated" who bought mer chief executive officer, and Andrew company shares during the timeframe. Cederoth, current chief financial officer, The suit claims the pension's trust fund are accused in the lawsuits of violating provisions of the Securities Exchange Act purchased 6,709 shares of Navistar stock for a total of roughly $246,000 and sold of 1934, as well as a few state laws. them for about $165,000 as stock prices The suits say that Ustian and Cederoth tumbled following Navistar abandoning made millions of dollars by inflating the plans to produce a compliant price of Navistar's stock artificially. The big-bore EGR engine. complaints allege that through"When defendants out the declared timeframe, revealed Navistar's the company issued true financial condimaterially false and tion and future busimisleading statements ness prospects, the regarding its business price of Navistar comand financial prospects. mon stock fell over 69 Navistar spokesperpercent from its Class son Elissa Koc declined Period high," according comment citing pending to the filing. litigation. Navistar common Navistar reportedly pumped more than $700 Navistar's proprietary MaxxForce stock traded as high 15 was discontinued in Septemas $70.17 per share on million into its EGR ber 2012 when the company April 26, 2011. After the program, which turned announced it would be using the out engines that never Cummins ISX15 as its 15-liter op- early August announcemet 2010 EPA emissions tion for International trucks. Continued on page 14 Scan the QR code with your smartphone or visit ccjdigital.com/subscribe-to-newsletters to sign up for the CCJ Daily Report, a daily e-mail newsletter filled with news, analysis, blogs and market condition articles. Hours delay backed by members of Congress F our key congressional transportation leaders sent a letter in late March to the Federal Motor Carrier Safety Administration requesting that it postpone implementing the revised hours-ofservice rule — set to go into effect in July — until after the ongoing lawsuit between the American Trucking Associations and FMCSA has been resolved. The letter sides with ATA, which has been pushing for a delay in the rule's implementation since December; FMCSA rejected ATA's request. U.S. House Transportation Committee Chairman Bill Shuster in the letter asked U.S. Transportation Secretary Ray LaHood to delay implementing the rule until 90 days after a resolution has been made regarding the litigation. Both sides presented oral arguments to a three-judge panel in a U.S. Court of Appeals in the District of Columbia Circuit on March 15. Most law enforcement training will take place 90 days before the implementation date, the Pennsylvania Republican wrote. It would be a wasteful exercise Continued on page 10 commercial carrier journal CCJ_0513_JOURNAL.indd 9 | may 2013 9 4/22/13 10:29 AM