NEW YORK, April 9, 2013 (GLOBE NEWSWIRE) -- Labaton Sucharow LLP filed a class action lawsuit on April 9, 2013 in the U.S. District Court for the Northern District of Illinois. The lawsuit was filed on behalf of persons or entities who purchased or otherwise acquired the publicly-traded securities of Navistar International Corporation ("Navistar" or the "Company") (NYSE:NAV) between June 9, 2010 and August 1, 2012, inclusive (the "Class Period").
The action charges Navistar and certain of its officers with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The complaint alleges that, throughout the Class Period, Navistar made false and misleading statements, and concealed material information relating to the Company's engine design and development efforts, warranty and recall expenses, and details of various assets and liabilities, including deferred tax assets.
Navistar is a holding company whose subsidiaries and affiliates produce trucks, buses, diesel engines, recreational vehicles, and chassis for commercial and military markets, and provide parts and service for trucks and trailers. The complaint alleges that, during the Class Period, Navistar concealed from shareholders that: (1) Navistar's efforts to achieve compliance with U.S. Environmental Protection Agency ("EPA") guidelines in truck manufacturing had failed, and Navistar would be forced to revise its plan to meet guidelines, imposing enormous costs on the Company; (2) Navistar did not have engines ready to meet new EPA standards, which became effective in 2010; (3) Navistar's filings with the U.S. Securities and Exchange Commission ("SEC") contained incomplete and misleading disclosures, including statements relating to its warranty and recall expenses, and details of various assets and liabilities; and (4) based on the foregoing, the defendants lacked a reasonable basis for their positive statements about the Company and its revenue outlook.
The truth about Navistar was revealed through a series of disclosures. First, on June 7, 2012, prior to the markets' open, Navistar issued a press release setting forth its operating results for its second fiscal quarter of 2012 ended April 30, 2012. The press release disclosed that the Company had incurred a loss of $172 million due in part to "a warranty reserve to repair early 2010 and 2011 vehicles." The Company also filed a quarterly report on Form 10-Q, in which it announced that "[w]e have not yet been able to obtain 0.20g certification for any of our [heavy duty diesel] engines." In response to this news, Navistar's stock price declined by $4.04 per share, or 14.35 percent, on extremely heavy trading volume.
Then, on July 6, 2012, Navistar disclosed in a press release that it was abandoning its Advanced Exhaust Gas Recirculation engine technology in favor of the selective catalytic reduction technology used by its competitors in order to meet 2010 EPA emissions standards. On this news, Navistar's stock price declined by $4.37 per share, or 15.18 percent, on elevated trading volume.
Finally, on August 2, 2012, Navistar issued a press release announcing that it was withdrawing its fiscal 2012 guidance until the release of its results for the third fiscal quarter of 2012 in September. In that press release, the Company also revealed that it had received a formal letter of inquiry from the SEC in connection with its investigation into various accounting and disclosure issues. In reaction to these revelations, the price of Navistar's stock declined by $3.33 per share, or 13.44 percent, on above-average trading volume.
If you are a member of this Class you can view a copy of the complaint and join this class action online at http://www.labaton.com/en/cases/Newly-Filed-Cases.cfm.
If you purchased Navistar common stock during the Class Period, you may be able to seek appointment as Lead Plaintiff. Lead Plaintiff motion papers must be filed with the U.S. District Court for the Northern District of Illinois no later than May 20, 2013. A lead plaintiff is a court-appointed representative for absent Class members. You do not need to seek appointment as lead plaintiff to share in any Class recovery in this action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member. You may retain counsel of your choice to represent you in this action.
If you would like to consider serving as lead plaintiff or have any questions about the lawsuit, you may contact Rachel A. Avan, Esq. of Labaton Sucharow LLP, at (800) 321-0476 or (212) 907-0709, or via email at ravan@labaton.com.
Labaton Sucharow LLP, with offices in New York, New York and Wilmington, Delaware, is one of the country's premier law firms representing institutional investors in class action and complex securities litigation, as well as consumers and businesses in class actions seeking to recover damages for anticompetitive practices. The Firm has been a champion of investor and consumer rights for nearly 50 years, seeking recovery of current losses and necessary governance reforms to protect investors and consumers. Labaton Sucharow has been recognized for its excellence by the courts and its peers. More information about Labaton Sucharow is available at www.labaton.com.