Market Overview

Lawsuit Claims Navistar Inflated Prices, Cheated Government On Price Of Military Vehicles

Share:
Lawsuit Claims Navistar Inflated Prices, Cheated Government On Price Of Military Vehicles

Navistar International Corp (NYSE: NAV) is accused in a newly unsealed whistleblower lawsuit of cheating the government of more than $1 billion by inflating the cost of military vehicles.

The lawsuit, filed in 2013 but unsealed by the U.S. District Court in Washington, D.C. on Tuesday, seeks $1.28 billion in damages and alleges Navistar officials forged invoices and other data in negotiations over a contract for its Mine-Resistant, Ambush-Protected vehicles, or MRAPs, between 2006 and 2013.

The complaint alleges Navistar overcharged the government for the vehicles and their parts. The suit alleges top company officials were aware of the efforts to mislead military buyers on the costs of the products.

The case was filed by Duquoin Burgess, who worked for Navistar in the Chicago area. The federal government has also intervened to join in the lawsuit.

Navistar Responds

Navistar spokeswoman Lyndi McMillan said the company would defend itself against the allegations.

“We believe our pricing was fair, reasonable and competitive, and we are disappointed the government has chosen to intervene in this matter,” McMillan said in the statement.

Burgess, a former Contract Director at Navistar, “witnessed the fraudulent conduct,” and filed the complaint in 2013 on behalf of himself and the United States, according to a statement by Burgess' lawyers at the firm Sanford, Heisler, Sharp.

The complaint alleges Navistar used false or misleading documents to inflate the typical commercial price for certain vehicle parts, including the chassis, engines and suspension systems, the firm said.

Navistar's stock traded higher by 1% Wednesday at $32.01 per share.

Related Links:

Navistar Takes $140 Million Revenue Hit From UAW-GM Strike

Navistar Plans $250 Million Plant And 600 New Jobs In Texas

Posted-In: Defense ContractorsGovernment News Legal

 

Related Articles (NAV)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

New Zealand Government Releases Draft Cannabis Legalization Bill For Public Consideration

Hyundai Motor Aims To Invest $52B On Electric Vehicles By 2025