NEW YORK, April 4, 2013 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that a class action lawsuit has been commenced in the United States District Court for the Northern District of Illinois on behalf of purchasers of common stock of Navistar International Corporation ("Navistar" or the "Company") (NYSE:NAV) during the period between November 3, 2010 and August 1, 2012, inclusive (the "Class Period"). The Complaint alleges that throughout the Class Period the Company issued materially false and misleading statements regarding the Company's business and financial prospects.
If you purchased Navistar between November 3, 2010 and August 1, 2012, you may, no later than May 20, 2013, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
If you purchased Navistar and want more information about the Navistar securities fraud lawsuit please contact George Pressly, Esq. at 1 (800) 631-6234 or email George at askGeorge@morgansecuritieslaw.com.
Navistar, among other things, manufactures trucks and trailers. The complaint alleges that during the Class Period, defendants issued materially false and misleading statements concerning the Company's financial condition and future business prospects. Prior to the Class Period, 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 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. By the beginning of the Class Period, however, it was clear this product differentiation strategy was not working. Despite the $700 million Navistar had spent on developing its EGR engine, the Company had not even applied for certification of the EPA emissions standard by the start of the Class Period – 10 months after the EPA standards had become effective. Thus, by the beginning of the Class Period, Navistar faced technological, legal, and liquidity issues which threatened its business. To conceal this fact from Navistar's investors and customers, throughout the Class Period defendants repeatedly stated that Navistar had indeed achieved an engineering milestone and had an EPA-compliant EGR engine ready to be certified.
As a result of the Company's false statements, the price of Navistar common stock traded at artificially inflated prices during the Class Period. In July 2012, Navistar 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. In addition, Navistar disclosed receiving a formal letter of inquiry from the SEC concerning an investigation of various accounting and disclosure matters dating back to November 2010.
The price of Navistar's common stock dropped from a closing price of $24.77 per share on August 1, 2012 to $21.44 per share on August 2, 2012, a decline of approximately 13% in one trading day.
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