San Diego, CA -- (ReleaseWire) -- 03/25/2013 -- An investor in shares of Navistar International Corp (NYSE:NAV) filed a lawsuit in the U.S. District Court for the Northern District of Illinois over alleged violations of Federal Securities Laws by Navistar International Corp in connection with certain allegedly false and misleading statements made between November 3, 2010 and August 1, 2012.
Investors who purchased shares of Navistar International Corp (NYSE:NAV) between November 3, 2010 and August 1, 2012, and or those who purchased NYSE:NAV shares in 2010 and currently hold any of those shares have certain options and for certain investors in NYSE:NAV shares are short and strict deadlines running. Deadline: May 20, 2013. NYSE:NAV investors should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of Navistar International Corp (NYSE:NAV) common stock during the period between November 3, 2010 and August 1, 2012, that Navistar International Corp and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing between November 3, 2010 and August 1, 2012 materially false and misleading statements concerning the Company’s financial condition and future business prospects.
Navistar International Corp (NYSE:NAV) reported that its Total Revenue declined from over $13.95 billion for the 12 months period that ended on Oct. 31, 2011 to over $12.94 billion for the 12 months period that ended on Oct. 31, 2012 and that its Net Income of over $1.72 billion for the 12 months period that ended on Oct. 31, 2011 declined to a Net Loss of $3.01 billion for the 12 months period that ended on Oct. 31, 2012
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”).
The plaintiff claims that Navistar International Corp 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 Corp had spent on developing its EGR engine, Navistar International Corp had not even applied for certification of the EPA emissions standard by November 3, 2010 and as a result Navistar International Corp allegedly faced technological, legal and liquidity issues which threatened its business
The plaintiff says that in order to conceal this fact from Navistar International Corp’s investors and customers, defendants repeatedly stated between November 3, 2010 and August 1, 2012 that Navistar International Corp 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 Corp. 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.
Then in July 2012, so the plaintiff, Navistar International Corp 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 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 Corp 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.
Shares of Navistar International Corp (NYSE:NAV) dropped from a closing price of $24.77 per share on August 1, 2012 to $21.44 per share on August 2, 2012.
In fact, NYSE:NAV shares declined from slightly over $70 in April 2011 to as low as $18.51 per share in October 2012.
Those who purchased shares of Navistar International Corp (NYSE:NAV) have certain options and contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego