Navistar International Corporation Case 12/13/2007
JANUARY 2011 - As per the notice: Security and Time Period: Navistar common stock (Symbol NAV) purchased on the open market between February 14, 2003 and July 17, 2006, inclusive.
Settlement Fund: $13,000,000 in cash plus any interest earned. Your recovery will depend on the timing of your purchases and any sales of Navistar common stock on the open market during the Class Period. Based on the information currently available to Lead Plaintiffs and the analysis performed by their damage consultants, it is estimated that if Class Members submit claims for 100% of the shares eligible for distribution under the Plan of Allocation (described below), the estimated average distribution per share of common stock will be approximately $0.325 before deduction of Court‐approved fees and expenses, including the cost of notifying members of the Class and settlement administration. Historically, actual claim rates are less than 100%, which result in higher distributions per share. A Class Member’s actual recovery will be a proportion of the Net Settlement Fund determined by that claimant’s recognized claim as compared to the total recognized claims of all Class Members who submit valid Proof of Claim and Release forms (“Proof of Claim”).
Reasons for Settlement: Avoids the costs and risks associated with continued litigation, including the danger of no recovery.
DECEMBER 2007 - A securities fraud lawsuit has been commenced on behalf of investors who purchased Navistar International Corp. securities. The action is pending against Navistar, certain of its current and former senior management and Deloitte & Touche LLP, Navistar’s former outside auditing firm. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleges that the defendants knowingly and fraudulently misrepresented Navistar’s financial results during the class period. When the truth began to be revealed to the market, beginning on December 14, 2005 and continuing through July 17, 2006, Navistar’s stock price fell from $30.28 to $20.95, a 30% drop.