Rigrodsky & Long, P.A.:
- Do you, or did you, own shares of Navistar International Corporation (NYSE: NAV)?
- Did you purchase your shares before November 3, 2010, or between November 3, 2010 and August 1, 2012, inclusive?
- Did you lose money in your investment in Navistar International Corporation?
- Do you want to discuss your rights?
According to the Complaint, prior to the Class Period, the 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 defendants’ false statements, the price of Navistar common stock traded at artificially inflated prices during the Class Period, reaching a high of $70.17 per share on April 26, 2011.On July 2012, the Company 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 were using. Then, on August 2, 2012, the Company issued a press release announcing that it was withdrawing its full-year fiscal 2012 guidance until the release of its third quarter 2012 results in September. In addition, Navistar disclosed receiving a formal letter of inquiry from the SEC involving an investigation of various accounting and disclosure matters dating back to November 2010 by the SEC. On this news, shares in Navistar dropped over 13%, closing at $21.44 per share on August 2, 2012, from a close of $24.77 per share on August 1, 2012, on volume of over 7.5 million shares.
If you wish to serve as lead plaintiff, you must move the Court no later than May 20, 2013. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed 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.While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States. Attorney advertising. Prior results do not guarantee a similar outcome.