A federal judge ruled on Jan. 25 that a civil case alleging Navistar’s former CEO misled investors about a failed engine technology can move forward.

Navistar International Corp. has agreed to pay $7.5 million to settle a Securities and Exchange Commission complaint that the OEM misled investors about the environmental compliance of its exhaust gas recirculation, or EGR, method of reducing air pollution from its trucks, the federal regulatory agency said.