In the weeks following a $2 billion settlement with the federal government and California over allegations of installing emissions-control defeat devices in Dodge Ram pickups, diesel engine manufacturer Cummins, is now confronted with class action lawsuits brought on by investors and customers.
A recently filed complaint asserts that the company and several current and former executives have allegedly made materially false and misleading statements to investors, thereby infringing upon federal securities laws.
Cummins’ legal troubles appear to be escalating, as it now faces the task of addressing these recent lawsuits in the aftermath of its substantial settlement regarding its emissions controls. The global engine manufacturer’s situation truly embodies the significant ripple effects that controversial corporate decisions can have.
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