Wabash National settles nuclear verdict lawsuit for undisclosed amount

Wabash National, a trailer manufacturer, has settled a nuclear verdict lawsuit out of court. The initial verdict, which was over $460 million, was reduced to a punitive damage award of $108 million and a compensatory award of $11.5 million. The settlement was disclosed in a SEC filing and Wabash believes the verdict was unsupported by the facts or the law. The company's out-of-pocket expense is $30 million.

Trailer manufacturer Wabash National has reached a settlement in its nuclear verdict lawsuit, significantly reducing its financial exposure. The initial verdict, which exceeded $460 million, was reduced to a punitive damage award of $108 million and a compensatory award of $11.5 million. The settlement was disclosed in a recent SEC filing.

Wabash, which operates under the ticker symbol WNC on the NYSE, had faced an out-of-pocket expense of $30 million, which is its contribution beyond what its insurer will pay out. The company's stock has shown little movement since the disclosure, trading slightly under $9 per share as of the latest available data.

The settlement comes after a two-week trial in the Circuit Court of the City of St. Louis, Missouri. The verdict was reached after just three hours of deliberations. Two people were killed in a 2019 crash involving a car that slammed into a trailer built by Wabash. The company's defense argued that its rear guard barriers were built to government specifications in place at the time. The driver's blood alcohol content, which was over legal limits, and the fact that the two passengers were not wearing seatbelts were not admitted into evidence.

Wabash believes the verdict was unsupported by the facts or the law. The company's statement, provided to FreightWaves, noted that while it continues to believe the verdict was unsupported, it has agreed to a settlement that significantly reduces its financial exposure. The settlement enables Wabash to remain focused on its core commitments: advancing safety, driving innovation, and delivering for its customers.

The settlement also highlights a broader trend in American courts, where aggressive plaintiffs' attorneys target reputable companies regardless of the facts. Wabash's statement noted that verdicts like this threaten not only innovation but also the stability of manufacturing and transportation companies that serve as economic anchors in communities across the country.

The news about the settlement came in the same SEC filing where Wabash disclosed preliminary information about its third quarter financial results. The company expects net sales of $382 million for the quarter, compared to $464 million a year earlier. The company's non-GAAP adjusted loss per diluted share is expected to be minus 51 cents per share, compared to net income of 19 cents per share in the third quarter of 2024.