Cummins (CMI) $1.675 Billion DOJ Penalty Precipitates Securities Fraud Class Action – Hagens Berman
CMI Said to Have Hid Engine Control Software Features in 2019-2023 Pickup Trucks
SAN FRANCISCO, Feb. 16, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Cummins Inc. *(NYSE: CMI)* investors who suffered substantial losses to submit your losses now.*Class Period: *Apr. 30, 2019 – Dec. 21, 2023
*Lead Plaintiff Deadline: *Mar. 15, 2024
*Visit:* www.hbsslaw.com/investor-fraud/cmi
*Contact An Attorney Now:* CMI@hbsslaw.com *844-916-0895*
*Cummins Inc. (CMI) Securities Fraud Class Action: *
In the past, Cummins has repeatedly assured investors that it has taken steps to ensure that its RAM 2500 and 3500 pickup truck engines and applications meet applicable emissions regulations.
A recently filed securities fraud class action complaint alleges Cummins made misleading statements and concealed that: (1) contrary to its post-April 2019 assurances about its commitment to compliance, Cummins continued to produce engines utilizing undisclosed engine control software features from 2019 to 2023; and (2) accordingly, the company understated its legal and regulatory risks.
Investors learned the truth on Dec. 22, 2023, when the U.S. Department of Justice announced an initial agreement with Cummins requiring it to pay a whopping $1.675 billion “to settle claims that, over the past decade, the company unlawfully altered hundreds of thousands of engines to bypass emissions tests in violation of the Clean Air Act.”
The DOJ further revealed that Cummins “also allegedly installed undisclosed auxiliary emission control devices on 330,000 model year 2019 to 2023 RAM 2500 and 3500 pickup truck engines.” Known as AECDs, these devices must be disclosed to the EPA and must comply with EPA Certificates of Compliance (“COC”). They did not, according to the DOJ.
In addition, Cummins said “it expects to record a charge of $2.04 billion in the fourth quarter of 2023 to resolve these and other related matters involving approximately one million pick-up truck applications in the United States.”
Attorney General Merrick Garland said the penalty is “the largest civil penalty we have ever secured under the Clean Air Act, and the second largest environmental penalty ever secured.”
This news sent the price of Cummins shares significantly lower as analysts and investors were surprised by the amount of the fine and new information.
“We are focused on investors’ losses and are investigating whether Cummins intentionally put profits ahead of public health and regulatory compliance,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation. “We are also investigating when the directors knew of the continued non-compliance.”
If you invested in Cummins and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Cummins investigation, read more »
*Whistleblowers: *Persons with non-public information regarding Cummins should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at *844-916-0895* or email CMI@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
*Attorney advertising.*
*Past results do not guarantee future outcomes.*
*Services may be performed by attorneys in any of our offices*.
Contact:
Reed Kathrein, 844-916-0895