DOW JONES NEWSWIRES
Navistar International Corp. (NAV) Chairman and Chief Executive
Daniel C. Ustian agreed to return part of his 2004 bonus in a
tentative settlement of a Securities and Exchange Commission
probe.
Several former employees of the maker of trucks, buses and
engines also are expected to agree to a civil penalty, but the
company will not pay any fines or penalties. Navistar will not
admit or deny wrongdoing as part of the settlement, which requires
the agency's approval.
The SEC has been investigating the company since 2006. In 2007,
Navistar restated its financial results for 2002 through the first
three quarters of 2005 to correct accounting errors, and it
recorded $1.99 billion in net restatement charges.
At that time, the company said some of the smaller, but in some
cases material, adjustments were due to "instances of intentional
misconduct," although most of the errors were due to a lack of
proper accounting knowledge. It also said most people involved in
misconduct were no longer with Navistar.
General Counsel Steven Covey said Monday that the company "has
invested heavily in systems and personnel to ensure that events
that led to the restatement will not occur in the future."
Navistar's shares closed Monday at $39.09 and were inactive
after hours.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com