SEC Fines Navistar $7.5 Million for Misleading Investors

The U.S. Securities and Exchange Commission (SEC) has charged Navistar a $7.5 million fine to settle a lawsuit that accuses former CEO Daniel Ustian of defrauding investors in 2011 and 2012, according to a Reuters report.

The U.S. Securities and Exchange Commission (SEC) has charged Navistar a $7.5 million fine to settle a lawsuit that accuses former CEO Daniel Ustian of defrauding investors in 2011 and 2012, according to a Reuters report.

According to the report, the SEC charges that Navistar defrauded investors into believing a diesel truck engine it was developing could meet federal emissions standards. Navistar has not admitted or denied wrongdoing, according to Reuters.

The Lisle, Illinois-based company said it settled to avoid the cost and distraction of litigation, and that "it was time to put this matter behind us."

Ustian has not settled. A lawyer for him did not immediately respond to requests for comment on the lawsuit, which was filed in federal court in Chicago.

The case arose from Navistar's failure to win Environmental Protection Agency approval of a heavy-duty diesel truck engine designed to meet Clean Air Act standards adopted in 2010.

The full Reuters story is available here.

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