Court Orders Navistar to Turn Over Docs to SEC

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By Michael Greene

Sept. 3 — Navistar International Corp. was ordered by the U.S. District Court for the Northern District of Illinois to produce a second set of documents it withheld as privileged in an ongoing Securities and Exchange Commission investigation.

In an Aug. 31 order issued by Magistrate Judge Sidney I. Schenkier, the court sustained in part and overruled in part Navistar's assertions of attorney-client privilege and work-product protection. The holding follows a June 30 order overruling Navistar's assertion of privilege as to documents sought by the SEC.

However, 13 documents remained in dispute after the June order. After in-camera review, the court ruled Aug. 31 on the remaining documents.


Last December, the SEC asked the court to compel Navistar to produce certain documents the company had redacted and withheld as privileged in response to investigative subpoenas.

The SEC is investigating “possible fraud relating to statements made by Navistar regarding its efforts to obtain a certificate of conformity from the U.S. Environmental Protection Agency,” the SEC said in a Sept. 1 release.

The company Sept. 2 said in a Form 10-Q filing that it received “Wells Notices” from the SEC in August.

“The Notices state that the staff has made a preliminary determination to recommend that the SEC file an enforcement action against the Company and its former chief executive officer, Daniel Ustian, alleging violations of the Securities Exchange Act of 1934, certain related regulations, the Securities Act of 1933, and an August 5, 2010 Order Instituting Cease-and-Desist Proceedings against the Company,” the filing states.

To contact the reporter on this story: Michael Greene in Washington at

To contact the editor responsible for this story: Yin Wilczek at

The order is available at

The SEC release is available at

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