October 19, 2009 / 11:34 PM / 10 years ago

Navistar, SEC tentatively settle probe

SEATTLE (Reuters) - Navistar International Corp (NAV.N) said on Monday it has reached a tentative settlement over a U.S. regulatory probe into the truck and engine maker’s restatement of financial results from 2002 to 2005.

The settlement will fully resolve issues investigated by the U.S. Securities and Exchange Commission since 2006, the company said in a statement.

Under the settlement, Navistar will not pay any fine or penalty, but will consent to the entry of an administrative settlement tied to pre-restatement accounting practices in some areas, the company said.

Also, Navistar Chief Executive Daniel Ustian has agreed to give back some of his 2004 bonus under the settlement, the company said.

Several former staff are also expected to agree to a civil penalty, according to Navistar.

Navistar’s accounting troubles began in January 2006 when the company said it would not file its form 10-K annual report for 2005 with the SEC on time.

In April 2006, Navistar fired its long-time independent auditor Deloitte, and hired KPMG. At the same time, it warned that it needed to restate earnings back to 2002 to fix accounting errors.

In December 2007, Navistar restated results for 2002 through the first three quarters of 2005.

Reporting by Aarthi Sivaraman; Editing by Richard Chang

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