{"id":23628,"date":"2017-03-04T05:55:13","date_gmt":"2017-03-04T05:55:13","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=23628"},"modified":"2017-03-04T05:55:13","modified_gmt":"2017-03-04T05:55:13","slug":"caterpillar-is-sued-by-a-shareholder-after-federal-raid","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/caterpillar-is-sued-by-a-shareholder-after-federal-raid.html","title":{"rendered":"Caterpillar is sued by a shareholder after federal raid"},"content":{"rendered":"<h2 style=\"text-align: justify;\">\n\t<span style=\"font-family:arial,helvetica,sans-serif;\"><span style=\"font-size:22px;\"><strong><span style=\"color:#000000;\">Caterpillar <\/span><\/strong><\/span><\/span><span style=\"font-family:arial,helvetica,sans-serif;\"><span style=\"font-size:22px;\"><strong><span style=\"color:#000000;\">is sued<\/span><\/strong><\/span><\/span><span style=\"font-family:arial,helvetica,sans-serif;\"><span style=\"font-size:22px;\"><strong><span style=\"color:#000000;\"> by a shareholder after federal raid<\/span><\/strong><\/span><\/span><br \/>\n<\/h2>\n<p style=\"text-align: justify;\">\n\t<strong><span style=\"color:#000000;\"><span style=\"font-size:18px;\">Caterpillar <\/span><\/span> <span style=\"color:#000000;\"><span style=\"font-size:18px;\">is sued<\/span><\/span> <\/strong><span style=\"color:#000000;\"><span style=\"font-size:18px;\"><strong> by a shareholder after federal raid:-<\/strong> Caterpillar Inc was sued on Friday for allegedly deceiving shareholders about its business, one day after federal law enforcers raided three of its buildings in connection with a probe into the heavy machinery manufacturer&#39;s offshore tax practices.<\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<span style=\"color:#000000;\"><span style=\"font-size:18px;\">In a complaint filed in Chicago federal court, Jacob Newman accused Caterpillar of defrauding him and other shareholders in regulatory filings by touting its commitment to good ethics, while concealing how it &quot;unlawfully used foreign subsidiaries&quot; to avoid paying billions of dollars of U.S. taxes.<\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<span style=\"color:#000000;\"><span style=\"font-size:18px;\">Caterpillar did not immediately respond to requests for comment after business hours.<\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<span style=\"color:#000000;\"><span style=\"font-size:18px;\">Shares of Caterpillar fell 4.3 percent on Thursday, wiping out more than $2.4 billion of the Peoria, Illinois-based company&#39;s market value.<\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<span style=\"color:#000000;\"><span style=\"font-size:18px;\">The company said it believed the raid by officials from agencies including the Internal Revenue Service&#39;s criminal investigation division, the Department of Commerce and the Federal Deposit Insurance Corp was connected with an IRS probe related to a Swiss parts unit, Caterpillar SARL.<\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<span style=\"color:#000000;\"><span style=\"font-size:18px;\">Caterpillar has been fighting an IRS demand that it pay $2 billion in taxes and penalties for shifting profit to the Swiss unit to lessen its U.S. tax bill.<\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<span style=\"color:#000000;\"><span style=\"font-size:18px;\">Newman is seeking unspecified damages in his proposed class-action lawsuit on behalf of Caterpillar investors from Feb. 19, <\/span><\/span><span style=\"color:#000000;\"><span style=\"font-size:18px;\">2013<\/span><\/span><span style=\"color:#000000;\"><span style=\"font-size:18px;\"> through March 1.<\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<span style=\"color:#000000;\"><span style=\"font-size:18px;\">The lawsuit also names Caterpillar Chief Executive Jim Umpleby, Chairman Douglas <\/span><\/span><span style=\"color:#000000;\"><span style=\"font-size:18px;\">Oberhelman<\/span><\/span><span style=\"color:#000000;\"><span style=\"font-size:18px;\"> and Chief Financial Officer Bradley Halverson as defendants. Oberhelman preceded Umpleby as chief executive.<\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<span style=\"color:#000000;\"><span style=\"font-size:18px;\">Companies often face U.S. lawsuits accusing them of securities fraud shortly after unexpected negative news causes a decline in their stock prices. It is unclear how many lawsuits Caterpillar might face.<\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<span style=\"color:#000000;\"><span style=\"font-size:18px;\">The case is Newman v. Caterpillar Inc et al, U.S. District Court, Northern District of Illinois, No. 17-01713.<\/span><\/span>\n<\/p>\n<p style=\"text-align: justify;\">\n\t<span style=\"font-size:8px;\"><span style=\"color:#000000;\">Source:-&nbsp;http:\/\/www.reuters.com\/article\/us-caterpillar-lawsuit-idUSKBN16A2OT<\/span><\/span><\/p>\n<div class=\"fb-background-color\">\n\t\t\t  <div \n\t\t\t  \tclass = \"fb-comments\" \n\t\t\t  \tdata-href = \"https:\/\/www.biphoo.com\/bipnews\/business\/caterpillar-is-sued-by-a-shareholder-after-federal-raid.html\"\n\t\t\t  \tdata-numposts = \"10\"\n\t\t\t  \tdata-lazy = \"true\"\n\t\t\t\tdata-colorscheme = \"light\"\n\t\t\t\tdata-order-by = \"social\"\n\t\t\t\tdata-mobile=true>\n\t\t\t  <\/div><\/div>\n\t\t  <style>\n\t\t    .fb-background-color {\n\t\t\t\tbackground: #ffffff !important;\n\t\t\t}\n\t\t\t.fb_iframe_widget_fluid_desktop iframe {\n\t\t\t    width: 630px !important;\n\t\t\t}\n\t\t  <\/style>\n\t\t  ","protected":false},"excerpt":{"rendered":"<p>Caterpillar is sued by a shareholder after federal raid Caterpillar is sued by a shareholder after federal raid:- Caterpillar Inc was sued on Friday for allegedly deceiving shareholders about its business, one day after federal law enforcers raided three of its buildings in connection with a probe into the heavy [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":23629,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[14627,14626,14628,14629,3299],"class_list":["post-23628","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-bradley-m-halverson","tag-caterpillar-is-sued-by-a-shareholder-after-federal-raid","tag-d-james-umpleby","tag-douglas-r-oberhelman","tag-united-states"],"_links":{"self":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/posts\/23628","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/comments?post=23628"}],"version-history":[{"count":0,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/posts\/23628\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/media\/23629"}],"wp:attachment":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/media?parent=23628"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/categories?post=23628"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/tags?post=23628"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}