Cummins Inc. $1.6 Million Securities Class Action Settlement

Individuals who purchased publicly traded Cummins Inc. common stock between Feb. 11, 2019, and Dec. 21, 2023, may be eligible to claim a cash payment from a class action settlement.

Cummins Inc. agreed to pay $1.6 million to settle a class action lawsuit alleging it and certain executives violated federal securities laws by making false and misleading statements to investors. The lawsuit claimed Cummins failed to disclose its use of defective engines in certain vehicles and adequately report potential losses related to regulatory investigations.

Who can file a claim?

The settlement class includes investors who purchased Cummins Inc. publicly traded common stock between Feb. 11, 2019, and Dec. 21, 2023, inclusive, and whose purchases or acquisitions allegedly caused them financial harm.

Additional details

• Both individuals and entities can be class members.
• The actual beneficial purchaser or acquirer or a legal representative must submit the claim.
• Joint owners must each sign the claim form.
• Executors, administrators, guardians, conservators and trustees may submit claims on behalf of others and must provide documentation proving their authority.

How much can class members get?

The total settlement fund is $1,600,000. The amount each class member will receive depends on several factors:

• The number of valid claims submitted
• The number of shares purchased, sold or held during the class period
• The timing of each purchase, sale and holding
• Court-approved deductions for attorneys’ fees, expenses and administration costs

The settlement administrator will distribute payments on a pro rata basis according to a court-approved plan of allocation:

• Estimated average recovery before deductions: Approximately $0.22 per allegedly damaged share
• Estimated average recovery after deductions: Approximately $0.14 per allegedly damaged share
• Recognized loss amounts depend on transaction timing:
• For shares sold on or before Dec. 21, 2023, the recognized loss amount is $0 per share.
• For shares sold between Dec. 22, 2023, and March 20, 2024, the recognized loss amount is the lesser of $8.43 per share or the purchase price minus the applicable average closing price through the date of sale, as set forth in the plan of allocation.
• For shares held as of the close of trading on March 20, 2024, the recognized loss amount is the lesser of $8.43 per share or the purchase price minus $252.77 per share.

• If total recognized losses exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
• Claimants whose calculated payment would be less than $10 will not receive a payout.

How to claim a Cummins securities class action settlement payment

To receive a payment, class members may file a claim online or download, print and complete the PDF claim form (beginning on Page 10) and mail it to the settlement administrator. The deadline to file a claim is April 23, 2026.

Settlement administrator's mailing address: Cummins Inc. Securities Litigation, c/o Strategic Claims Services, P.O. Box 230, 600 N. Jackson St., Suite 205 Media, PA 19063

Proof or documentation required to submit a claim

All class members must provide the last four digits of their Social Security number or their taxpayer identification number. They must also provide purchase and sale information, including:

• Trade dates
• Number of shares purchased or sold
• Total purchase or sale price

Class members must provide documentation supporting their transactions in Cummins common stock. Acceptable proof includes:

• Broker confirmation slips
• Broker account statements
• Other documents evidencing each purchase and sale

Payout options

• Physical check

$1.6 million settlement fund

The $1,600,000 settlement fund includes:

• Settlement administration costs: Up to $325,000
• Attorneys' fees: Up to $480,000
• Attorneys' expenses: Up to $95,000
• Service award to lead plaintiff: Up to $5,000
• Payments to eligible class members: The remainder of the fund

Important dates

• Deadline to file a claim: April 23, 2026
• Opt-out deadline: April 23, 2026
• Fairness hearing: May 21, 2026

When is the Cummins securities class action settlement payout date?

The settlement administrator will issue payments to eligible class members after the court resolves any appeals and grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged Cummins Inc. and certain executives made false or misleading statements and failed to disclose material information regarding defective engines and potential regulatory exposure, which allegedly caused investors to purchase Cummins common stock at artificially inflated prices.

Cummins and the named defendants denied all allegations of wrongdoing and liability but agreed to settle to avoid the risks, costs and delays of further litigation.

Sources

1. Class notice
2. Claim form