Navistar to Pay $7.5 Million Fine for Misleading Investors

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Source:   —  April 01, 2016, at 4:44 AM

will pay $7.5 million to settle Securities and Exchange Commission complains about the company'south claim to investors that it'd developed an engine that could be certified to meet U.

Navistar International Corp. will pay $7.5 million to settle Securities and Exchange Commission complains about the company'south claim to investors that it'd developed an engine that could be certified to meet U. S. emission standards, the SEC announced Thursday.

The Lisle, Illinois-based truck-maker didn't admit wrongdoing as portion of the settlement.

The SEC also charged former Navistar CEO Daniel C. Ustian with misleading investors and with aiding and abetting violations by the company. In a filing in U. S. District Ct in Chicago, the SEC alleged that Ustian failed to fully disclose the company'south difficulties obtaining Environmental Protection Agency certification of a truck engine able to meet stricter Spotless Air Act standards that took effect in 2010.

"When public companies and top executives discuss necessary regulatory developments with investors, they should tell the whole truth," said SEC director of enforcement Andrew J. Ceresney. "Here, we allege that Navistar and its former CEO misled investors about their dealings with the EPA and the likely approval of its new emissions technology."

Telephone calls to a Navistar spokesman seeking comment on the settlement weren't immediately returned. A telephone listing for Ustian couldn't be found. He stepped down as Navistar CEO in two thousand-twelfth.

Navistar struggled for years with development of an advanced technology truck engine. It'south first application for EPA certification was rejected in two thousand-eleventh. The company reapplied in two thousand twelve, and EPA staff raised "several serious concerns" it said would necessity to be resolved before it could approve the application.

Despite the EPA stance, Navistar issued statements characterizing the application as a "milestone." In a conference call with analysts and investors, Ustian indicated that certification was proceeding in a typical timeframe and that Navistar could start production on the engine in June 2012, according to the SEC.

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