An investigation on behalf of investors in NYSE:NAV shares over potential wrongdoing at Navistar International Corp was announced and NYSE:NAV stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 02/03/2015 -- An investigation on behalf of current long-term investors in shares of Navistar International Corp (NYSE:NAV) shares was announced over potential breaches of fiduciary duties by certain officers and directors at Navistar International.
Investors who purchased shares of Navistar International Corp (NYSE:NAV) in early 2011 or earlier and currently hold any of those NYSE:NAV shares have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The investigation by a law firm concerns whether certain Navistar International officers and directors breached their fiduciary duties and caused damage to the company and its shareholders.
Prior to November 3, 2010, the U.S. Environmental Protection Agency ("EPA") had imposed new regulations on 2010 model trucks that included strict emissions standards. The two primary engine technologies that emerged to meet the new standards were Exhaust Gas Recirculation ("EGR") and Selective Catalytic Reduction ("SCR").
Navistar International Corp reported that its Total Revenue declined from over $13.64 billion for the 12 months period that ended on Oct. 31, 2010 to over $10.8 billion for the 12 months period that ended on Oct. 31, 2014. Shares of Navistar International Corp (NYSE:NAV) traded in 2011 as high as $6952 per share.
On March 2013, a lawsuit was filed against Navistar International over alleged Securities Laws Violations. The plaintiff alleged that Navistar International Corporation chose the EGR technology, not the SCR technology its competitors were using to meet the new standards, and then represented that the new EGR technology was compliant and the vehicles were ready for sale.
According to the complaint after November 3, 2010 it was clear this product differentiation strategy was not working.The plaintiff claims that despite the $700 million Navistar International Corporation had spent on developing its EGR engine, Navistar International Corporation had not even applied for certification of the EPA emissions standard by November 3, 2010 and as a result Navistar International Corporation allegedly faced technological, legal and liquidity issues which threatened its business.
The plaintiff says that in order to conceal this fact from Navistar International Corporation's investors and customers, defendants repeatedly stated between November 3, 2010 and August 1, 2012 that Navistar International Corporation had indeed achieved an engineering milestone and had an EPA-compliant EGR engine ready to be certified and as a result of the defendants' statements, the price of Navistar International Corporation common stock traded at inflated prices between November 3, 2010 and August 1, 2012, reaching a high of $70.17 per share on April 26, 2011.
The plaintiff says that in July 2012 Navistar International Corporation admitted its failure to achieve an EPA-compliant EGR engine and announced that in order to remain in business it was adopting the same SCR technology its competitors had been using.
On August 2, 2012, Navistar International Corporation issued a press release announcing that is was withdrawing its full-year fiscal 2012 guidance until the release of its third fiscal quarter 2012 results in September. Furthermore, Navistar International Corporation disclosed that it received a letter of inquiry from the Securities and Exchange Commision ("SEC") involving an investigation of various accounting and disclosure matters dating back to November 2010.
On January 29, 2015, it was reported that the U.S. Securities and Exchange Commission ("SEC") is asking a federal court to force engine manufacturer Navistar International Corp. to hand over lobbying-related records as part of an ongoing fraud investigation into the company.
The SEC reportedly said it has been sending Navistar International Corp investigative subpoenas since 2012, as part of a probe into whether the company made certain misstatements in connection with its efforts to win certification from the Environmental Protection Agency that its engines comply with clean air laws.
The SEC reportedly alleges that Navistar International Corp is withholding communications with the law firms and public relations firms it hired to lobby on its behalf, claiming such information is privileged.
On January 30, 2015, NYSE: NAV shares closed at $29.42 per share.
Those who purchased shares of Navistar International Corp (NYSE:NAV), have certain options and should contact the Shareholders Foundation.
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