Navistar International Corp. has agreed to pay $9.1 million to resolve a shareholder class action accusing the truck manufacturer of making false or misleading statements about the development of a reduced emissions engine, according to documents filed in Illinois federal court.
In asking U.S. District Judge Sara L. Ellis to grant final approval of the deal, the investors said the terms were fair and reasonable and reached after three years of hard-fought litigation. Lead plaintiff Central States, Southeast and Southwest Areas Pension Fund accuses Navistar of violating securities laws by concealing knowledge that its proprietary engine system wasn't going to work.
An attorney for the investors, Carol Gilden of Cohen Milstein Sellers & Toll PLLC, told Law360 they were satisfied with the outcome. "We believe the proposed settlement is a great resolution of this hotly contested action on behalf of shareholders," Gilden said. "We look forward to the hearing before Judge Ellis at the end of October where we will ask her to grant final approval."
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