(CHICAGO, Ill.) A federal judge has granted preliminary approval to a $9.1 million all-cash settlement in the Navistar Securities Litigation achieved by Lead Plaintiff Central States, Southeast and Southwest Areas Pension Fund. In addition to Navistar, the settlement was reached with former CEO Daniel C. Ustian, and certain other directors and officers.
Subject to final Court approval, the proposed settlement preliminarily approved by Judge Sara L. Ellis of the United States District Court for the Northern District of Illinois on May 25, 2016, will resolve securities fraud claims asserted under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Central States, Southeast and Southwest Areas Pension Fund alleged Navistar and other defendants made material misrepresentations and omissions concerning the development and marketability of Navistar’s exhaust gas recirculation technology to meet the EPA’s NOx regulations for truck engines.
“We are pleased that Judge Ellis has granted preliminary approval to this substantial settlement with Navistar and the other defendants,” said Lead Plaintiff’s attorney Carol V. Gilden. “We look forward to these funds ultimately being dispersed to the pension funds and other investors who were misled by Navistar’s claims about the Company’s progress in developing this technology.”
Upon approval, the proposed $9.1 million settlement will benefit a class of individuals and entities that purchased Navistar International Corporation common stock from March 10, 2010, to August 1, 2012. In the order, Judge Ellis authorized notice of the proposed settlement to be issued to class members.
A court hearing will be held on November 1, 2016, at 10:30 a.m. to consider, among other matters, whether the proposed settlement issued on May 25th should be given final approval and any request by Lead Counsel, Cohen Milstein Sellers & Toll PLLC, for attorneys’ fees and expenses.
Lead Plaintiff and the Class are represented by Steven J. Toll, Carol V. Gilden, S. Douglas Bunch, and Genevieve Fontan, all of Cohen Milstein. More information about the settlement, including the notice, proof of claim form, and settlement agreement, will be posted in the coming weeks at www.navistarsecuritiessettlement.com.
For more information about the case, visit https://www.cohenmilstein.com/case-study/navistar-litigation.
Order - May 25, 2015
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