The Securities and Exchange Commission has reached a settlement with Navistar International Corp. over the company’s claim to investors it had developed an engine that could be certified to meet U.S. emission standards.
Under the deal announced Thursday, Navistar will pay a $7.5 million penalty. Navisatr did not admit to any wrongdoing.
The SEC also charged former Navistar CEO Daniel C. Ustian with misleading investors and with aiding and abetting violations by the Lisle, Illinois-based truck maker. The SEC alleges Ustian failed to fully disclose the company’s difficulties obtaining Environmental Protection Agency certification of a truck engine able to meet stricter Clean Air Act standards.
Telephone calls to a Navistar spokesman for comment weren’t immediately returned. A listing for Ustian could not be found.