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Globe Newswire 12-Feb-2024 11:08 AM
Cummins Inc. (CMI) Securities Fraud Class Action:
In a report to clients, analysts at UBS recently commented on Cummins' agreement to pay a $1.675 billion fine for installing devices on hundreds of thousands of engines to allow them to emit excess pollution, the largest-ever civil penalty for a Clean Air Act violation.
UBS remarked that "the settlement is bigger than we were expecting," noting that it "equates to ~5.8% of [Cummins'] current market cap." UBS emphasized the "cash drag" the settlement presents, stating that "payment /charge are not tax deductible and there is no insurance to reduce the amount CMI has to pay out," and that "CMI might do some short term borrowing to finance a part of it."
In addition to negative analyst sentiment, Cummins also faces a recently filed securities fraud class action stemming from the EPA/Carb settlement.
The complaint there alleges Cummins misrepresented 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.
"We are investigating whether Cummins intentionally made false statements concerning its 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 »
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.
Past results do not guarantee future outcomes.
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Reed Kathrein, 844-916-0895