Navistar Hit With $30.8 Million Judgment in Prostar/Maxxforce Lawsuit
A jury has awarded $30.8 million to Milan Supply Chain Solutions in its suit against Navistar Inc. Photo courtesy Milan Supply Chain Solutions
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A jury has awarded $30.8 million to Milan Supply Chain Solutions in its suit against Navistar Inc. Photo courtesy Milan Supply Chain Solutions
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Navistar Inc. disputes allegations that it didn’t thoroughly test its MaxxForce EGR engines – allegations that surfaced in a lawsuit where a jury last week awarded $30.8 million in damages – including testimony about the engine program by former executive Jim Hebe that the company “did not test s**t”.
The Tennessee jury found that Navistar committed fraud and violated the Tennessee Consumer Practice Act in connection with the sale of 243 Navistar International ProStars with MaxxForce engines to Milan Supply Chain Solutions. It awarded $10.8 million in actual damages and $20 million in punitive damages.
Tennessee-based Milan alleged that Navistar misled them, saying the truck maker failed to disclose that the MaxxForce 13L engine, which used exhaust gas recirculation to meet 2010 emissions standards rather than the selective catalytic reduction being used by other truck and engine makers, was launched with “serious known defects.”
Milan also alleged that Navistar, while touting the quality of its testing program, knew that the testing had serious flaws, was incomplete at launch, and put the trucks into customers’ hands knowing that the customers would end up becoming the de facto test fleet for Navistar’s new 2010 year model engine.
In a statement, Navistar said it is disappointed in the jury’s verdict and is evaluating its options to challenge it, noting it has successfully defended similar claims in several jurisdictions, including dismissal of claims of fraud in courts in Texas, Wisconsin, Michigan, Indiana, Alabama, and Illinois.
“Navistar tested the MaxxForce 13 engine consistent with industry standards,” the company said in a statement. “They were tested for 12 million miles prior to launch under rigorous conditions, in test cells and on the road. At the time of the product …Read the rest of this story
