Kessler Topaz Meltzer & Check, LLP Reminds Investors of Securities Fraud Class Action Against Cummins Inc. (CMI) and Urges CMI Investors with Substantial Losses to Contact the Firm - Seite 2

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’s 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.

WHAT CAN I DO?
Cummins investors may, no later than March 15, 2024, move the Court to serve as lead plaintiff for the class, through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Cummins investors who have suffered significant losses to contact the firm directly to acquire more information. The class action complaint against Cummins, Baker v. Cummins Inc., et al., Case No. 24-cv-00369, is filed in the United States District Court for the Central District of California.