GM Calls Diesel Emissions Lawsuit 'Baseless'

Owners and lessees of more than 705,000 Duramax diesel trucks sued General Motors Company GM Thursday for installing devices to cheat U.S. emissions inspections, according to Bloomberg. A company representative told Benzinga the claims were unfounded.

"These claims are baseless and we will vigorously defend ourselves,” the spokesperson told Benzinga in an email. “The Duramax Diesel Chevrolet Silverado and GMC Sierra comply with all U.S. EPA and CARB emissions regulations."

The class-action lawsuit accuses GM of equipping two models of its heavy-duty trucks with test-routing technology between 2011 and 2016. The trucks thus passed regulatory inspections while actually producing emissions two to five times the permitted limit on the road.

"The complaint underscores questions about the credibility of diesel technology," the Bloomberg report said.

According to the legal documents filed in a Detroit federal court, the subsequent environmental damage could surpass that caused throughout the Volkswagen AG (ADR) VLKAY scandal. Volkswagen lost $24.5 billion in its comparable suit.

GM shares initially fell more than 2.4 percent following the headline, hitting an intraday low of $31.92.

At time of publication, the stock recovered to rest nearly 1.2 percent down on the day at $32.76.