PHILADELPHIA -- The law firm of Spector, Roseman & Kodroff, P.C. announces that a securities class action lawsuit was commenced in the United States District Court for the Northern District of Illinois, on behalf of purchasers of the securities of Navistar International Corporation ("Navistar" or the "Company") (Other OTC:NAVZ.PK) between February 14, 2003 through July 17, 2006, inclusive (the "Class Period").

The Complaint alleges that defendants violated the federal securities laws by issuing materially false and misleading statements contained in press releases and filings with the Securities and Exchange Commission during the Class Period. Specifically, the Complaint alleges that: (1) that the Company had significantly underreserved for warranty expenses; (2) that the Company had overstated its revenue by understating the level of such warranty reserves; (3) that the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles; (4) that the Company lacked adequate internal and financial controls; and (5) that, as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.

On December 14, 2005, the Company shocked investors when it postponed an analyst meeting as the audit process for its 2005 Annual Report (ended October 31, 2005) was "taking longer than expected." Investors were not comforted by the Company's Chief Executive Officer assurance that "as a [C]ompany, we have high standards." On this partial disclosure, the Company's shares fell $2.11 per share, or 7 percent, to close on December 14, 2005 at $28.17 per share, on unusually heavy trading volume.

The Company's shares continued to decline as Navistar revealed additional information relating to its accounting problems. Then on July 17, 2006, Moody's investor service withdrew its rating of the Company, "due to its belief that [Navistar] lacks adequate financial information to maintain a rating." By July 17, 2006, the Company's shares had declined to $20.95 per share.

Subsequently, on February 13, 2007, the Company announced that its stock had been suspended and delisted from the New York Stock Exchange, and that it would start trading on the over-the-counter market (commonly known as the "pink sheets"). Finally, on October 25, 2007, almost two years after Navistar first discovered its accounting problems, the Company disclosed that its restatement adjustments would total $1.12 billion for the restated financial periods, including warranty reserve increases of $321 million. Additionally, the Company recorded $874 million in income tax adjustments. The Company further revealed that it had identified a number of material weaknesses in its internal controls over financial reporting, and an independent law firm investigating the Company identified instances of intentional misconduct which resulted in the need for restatement adjustments.

If you purchased Navistar securities during the Class Period, you may, no later than February 15, 2008, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, which acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the “largest financial interest” in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the “largest financial interest,” and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.

If you have sustained substantial losses in Navistar securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.

If you wish to join this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or e-mail at classaction@srk-law.com. For more detailed information about the firm please visit its website at http://www.srk-law.com.

Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm’s reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered through judgments and settlements on behalf of thousands of defrauded shareholders and companies.