Cummins Inc. $1.6 Million Securities Class Action Settlement, Shareholders Who Bought Stock During EPA Emissions Scandal Get $0.22 Per Share
Cummins Inc. agreed to a $1.6 million securities class action settlement for investors who purchased common stock between February 11, 2019, and December 21, 2023, while the company allegedly concealed EPA emissions violations. The settlement provides an estimated $0.22 per damaged share (approximately $0.14 after legal fees). Shareholders must file claims by April 23, 2026, to receive compensation.
If you owned Cummins stock during the class period and held shares when the emissions scandal broke, you may qualify for payment based on your recognized loss calculation.
What Is the Cummins Securities Settlement About?
This case, Baker v. Cummins Inc., et al., Case No. 1:25-cv-00430-TWP-MKK, pending in the U.S. District Court for the Southern District of Indiana, alleges Cummins violated federal securities laws by making false statements about emissions compliance.
The complaint claims Cummins installed defective “defeat devices” in certain engines that didn’t comply with Environmental Protection Agency and California Air Resources Board standards, yet told investors the company prohibited such devices. The lawsuit further alleges Cummins failed to adequately disclose loss contingencies after revealing EPA and CARB investigations.
As a result of these alleged violations, Cummins was investigated and fined by the EPA, CARB, and U.S. Department of Justice. Cummins denies all wrongdoing. The settlement includes no admission of liability—it’s simply an agreement to resolve litigation and avoid trial costs.
Who Qualifies for the Settlement?
You’re eligible if you purchased publicly-traded Cummins common stock (CUSIP: 231021106) during the class period: February 11, 2019 through December 21, 2023 (both dates inclusive).
Excluded from the settlement:
- Defendants and Cummins officers/directors
- Immediate family members of excluded persons
- Cummins subsidiaries and related entities
- Anyone who validly opts out
- Persons who suffered no compensable losses
If you sold all your Cummins shares on or before December 21, 2023—before the alleged fraud disclosure—your recognized loss is $0.00 and you won’t receive payment.
How Much Will You Receive?
Individual payments depend on several factors using the Plan of Allocation’s recognized loss formula. The settlement provides approximately 7.2 million damaged shares split the $1.6 million fund.
Estimated recovery (before fees): $0.22 per damaged share
Estimated recovery (after fees): $0.14 per damaged share
These are averages. Your actual recovery depends on:
- When you purchased and sold shares
- Purchase and sale prices
- Number of shares you bought
- Total valid claims filed
- Whether you held shares through corrective disclosures
Recognized Loss Calculation:
Shares Retained Through March 20, 2024: Lesser of $8.43 per share OR difference between purchase price and $252.77 per share.
Shares Sold December 22, 2023 – March 20, 2024: Lesser of $8.43 per share OR difference between purchase price and average closing price on sale date.
Shares Sold On or Before December 21, 2023: $0.00 recognized loss.
Similar to calculations used in the Affirm Class Action Lawsuit securities fraud case, the formula accounts for artificial inflation caused by alleged misstatements and subsequent price declines when truth emerged.
How to File a Claim
Online Filing (Recommended): Visit www.strategicclaims.net/Cummins/ and submit electronically by 11:59 p.m. EST on April 23, 2026.
Mail Filing: Complete the Proof of Claim form and mail postmarked by April 23, 2026 to:
Cummins Inc. Securities Litigation
c/o Strategic Claims Services
P.O. Box 230
600 N. Jackson St., Ste. 205
Media, PA 19063
Required Documentation:
- Complete brokerage statements showing ALL Cummins transactions from February 11, 2019 through March 20, 2024
- Trade confirmations
- Account statements
Missing or incomplete documentation will result in claim rejection. The claims administrator may request additional records to verify your transactions.
Critical Settlement Details
Claim Deadline: April 23, 2026
Objection/Opt-Out Deadline: April 23, 2026
Final Approval Hearing: May 21, 2026 at 10:00 a.m.
Court: U.S. District Court, Southern District of Indiana, 46 East Ohio Street, Courtroom 344, Indianapolis, IN 46204
Attorney Fees: Lead Counsel will request up to 30% ($480,000) plus $95,000 in expenses and $5,000 total for lead plaintiff service awards.
Understanding Securities Fraud Claims
The lawsuit alleges violations of Section 10(b) of the Securities Exchange Act and SEC Rule 10b-5, which prohibit material misstatements or omissions in connection with securities purchases or sales.
“Material” means information significant enough that reasonable investors would consider it important when deciding whether to buy, sell, or hold stock. The complaint claims Cummins’ statements about emissions compliance and investigation contingencies were material misrepresentations that artificially inflated stock prices.
When Cummins disclosed EPA and CARB investigations, the alleged truth emerged and stock prices declined, causing investor losses. Similar principles apply to other corporate fraud cases like the Bumble securities fraud litigation where misleading statements about business performance allegedly harmed shareholders.
Common Filing Mistakes
Incomplete Transaction Records: You must report ALL Cummins purchases and sales during the entire claim period, not just transactions you think are relevant.
Missing Documentation: Claims without brokerage statements showing transactions will be rejected. Contact your broker if you don’t have records.
Late Submission: The April 23, 2026 deadline is firm. Late claims won’t be processed.
Incorrect FIFO Matching: The settlement uses First-In-First-Out matching, so provide transactions in chronological order.
Tax Implications
Settlement payments may be taxable income. The settlement administrator will issue IRS Form 1099 for payments meeting reporting thresholds. Consult a tax professional about your specific situation, as securities settlement taxation varies based on whether payments represent return of capital or taxable income.
Settlement Administrator Contact
Strategic Claims Services
Phone: (866) 274-4004
Email: [email protected]
Website: www.strategicclaims.net/Cummins/
Fax: (610) 565-7985
Frequently Asked Questions
Do I need a lawyer to file a claim?
No. Securities class action claims allow self-filing. Complete the claim form yourself and submit required brokerage documentation. Class counsel receives fees from the settlement fund, not from individual claimants.
What if I sold some shares but still own Cummins stock?
You may still qualify. The recognized loss formula accounts for partial sales. Provide complete transaction history showing all purchases and sales during the claim period, plus shares held at March 20, 2024.
What if I bought and sold multiple times?
Report all transactions chronologically. The FIFO matching method will calculate your recognized loss based on the sequence of purchases and sales.
Can I opt out and sue individually?
Yes, but you must submit a written exclusion request postmarked by April 23, 2026, with documentation proving your beneficial ownership. Opting out means you receive no settlement payment but preserve individual lawsuit rights.
When will I receive payment?
If the court approves the settlement on May 21, 2026, and no appeals delay the process, payments typically distribute 60-90 days after final approval. Expect checks in late summer or fall 2026.
What if my brokerage closed or I changed brokers?
Contact your former broker or current broker to obtain historical statements. Most brokerages retain transaction records for at least seven years and can provide documentation upon request.
Last Updated: January 19, 2026
Disclaimer: This article provides general information about the Cummins Inc. Securities Class Action Settlement based on official court documents and settlement notices. It does not constitute legal or investment advice. Settlement terms are subject to final court approval. For specific questions about your eligibility, recognized loss calculation, or rights, contact the settlement administrator at (866) 274-4004 or consult a qualified securities attorney.
Sources:
- Official Settlement Notice and Claim Form – Baker v. Cummins Inc., et al., Case No. 1:25-cv-00430-TWP-MKK
- U.S. District Court for the Southern District of Indiana – Case Docket
- Strategic Claims Services Settlement Website – www.strategicclaims.net/Cummins/
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About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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