Misleading Investors About Advanced Technology Engine
The U.S. Securities and Exchange Commission (SEC) charged Navistar International Corporation with misleading investors about its development of a truck engine that could meet stricter federal emissions standards. The SEC alleged that, in 2011 and 2012, Navistar and former Navistar CEO Daniel Ustian failed to fully disclose the company’s difficulties obtaining Environmental Protection Agency certification of a truck engine able to meet Clean Air Act standards that went into effect in 2010. Navistar and Ustian also allegedly misled investors repeatedly about the status of development and certification work on the engine. Without admitting or denying the charges, Navistar reached a settlement with the SEC in which it agreed to pay a $7.5 million penalty. The SEC separately charged Ustian with misleading investors and with aiding and abetting Navistar’s violations.
- Misconduct Type
- Enforcement Agency
- Contracting Party
- Court Type
- Date of SEC Order
|Navistar Defense LLC||$7,500,000|