| COMPANY |
Cummins Inc. |
| COURT |
United States District Court for the Central District of California |
| CASE NUMBER |
23-cv-00369 |
| JUDGE |
The Hon. Maame Ewusi-Mensah Frimpong |
| CLASS PERIOD |
April 30, 2019 through December 21, 2023 |
| SECURITY TYPE |
Securities |
Cummins investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than March 15, 2024 move the Court to serve as lead plaintiff of the class, if you so choose.
A class action lawsuit has been filed on behalf of those who purchased or acquired Cummins Inc. (“Cummins”) (NYSE: CMI) securities between April 30, 2019 and December 21, 2023, both dates inclusive (the “Class Period”).
Case Background:
The Class Period begins on April 30, 2019, when Cummins filed its quarterly report with the SEC wherein the company advised investors that, following conversations with the EPA and other governmental regulators regarding certification for the engines in the 2019 RAM 2500 and 3500 trucks, that it was formally reviewing its emissions certification and compliance process for its pickup truck applications.
Thereafter and throughout the Class Period, Cummins continued to make the same representations to investors in SEC filings and other public statements, however, despite the company’s continued assurances about the legal compliance of its engines, Cummins was continuing to produce engines for RAM 2500 and 3500 trucks with unlawful emission control devices.
The truth was finally revealed on December 22, 2023, when during pre-market hours, Cummins disclosed that the company had reached an agreement in principle with the EPA and other state and federal regulators “to resolve civil claims regarding the [c]ompany’s emissions certification and compliance process for certain engines” and that Cummins expected to record “a charge of approximately $2.04 billion in the fourth quarter of 2023 to resolve these claims and related matters.”
Further, that same day, the U.S. Department of Justice (“DOJ”) revealed that, not only had the company engaged in malfeasance for years prior to its April 2019 announcement of its internal review, but also that the company engaged in malfeasance for years after it disclosed the review of its compliance with emissions standards. For example, the DOJ stated that Cummins had “allegedly installed defeat devices on 630,000 model year 2013 to 2019 RAM 2500 and 3500 pickup truck engines.” The DOJ press release also disclosed that the company allegedly installed undisclosed auxiliary emission control devices on 330,000 model year 2019 to 2023 RAM 2500 and 3500 pickup truck engines. According to the DOJ, the penalty agreed to with Cummins would be the “largest ever for a clean air act violation and the second largest ever environmental penalty.”
Following this news, the price of Cummins stock fell by $7.01 per share, or 2.87%, to close at $236.99 on December 22, 2023.
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) contrary to its post-April 2019 Announcement assurances about its commitment to compliance, Cummins continued to produce engines with unlawful emission defeating devices from 2019 to 2023; (2) accordingly, Cummins understated its legal and regulatory risk, and overstated its commitment to environmental protection, and (3) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.