NEW YORK, Jan. 16, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all persons or entities who purchased the securities of Cummins, Inc. (“Cummins” or the “Company”) (NYSE: CMI) between April 30, 2019 and December 21, 2023, both dates inclusive (the “Class Period”).
The Complaint alleges that defendant Cummins purports to be a “a global power leader.” Cummins “designs, manufactures, distributes and services diesel, natural gas, electric and hybrid powertrains and powertrain-related components including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems, automated transmissions, axles, drivelines, brakes, suspension systems, electric power generation systems, batteries, electrified power systems, electric powertrains, hydrogen production and fuel cell products.”
The Complaint alleges that Defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) contrary to its assurances about its commitment to compliance, Cummins continued to produce engines with unlawful emission defeating devices from 2019 to 2023; and (2) accordingly, Cummins understated its legal and regulatory risk, and overstated its commitment to environmental protection.
The Complaint further alleges that on December 22, 2023, Cummins announced that it “expects to record a charge of approximately $2.04 billion in the fourth quarter of 2023” related to “an agreement in principle [Cummins reached] with the U.S. Environmental Protection Agency, the California Air Resources Board (“CARB”), the Environmental and Natural Resources Division of the U.S. Department of Justice and the California Attorney General’s Office to resolve civil claims regarding the Company’s emissions certification and compliance process for certain engines primarily used in pick-up truck applications in the United States.”
The Complaint also alleges that the DOJ Press Release stated that Cummins “allegedly installed defeat devices on 630,000 model year 2013 to 2019 RAM 2500 and 3500 pickup truck engines”, but then revealed that Cummins "also allegedly installed undisclosed auxiliary emission control devices on 330,000 model year 2019 to 2023 RAM 2500 and 3500 pickup truck engines”, revealing that the Company engaged in malfeasance for years after it disclosed the review of its compliance with emissions standards.
The Complaint further alleges that the DOJ Press Release noted that the penalty agreed to with Cummins would be the “largest ever for a clean air act violation and the second largest ever environmental penalty.”
According to the Complaint, on this news, the price of Cummins stock fell by $7.01 per share, or 2.87%, to close at $236.99 on December 22, 2023.
Investors who purchased or otherwise acquired shares of Cummins should contact the Firm prior to the March 15, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
