Cummins Faces Hefty $2B Penalty And Over 600K Recalls In Ram Trucks Emissions Violation Case
Portfolio Pulse from Benzinga Neuro
Cummins Inc. (NYSE:CMI) is ordered to recall 600,000 Ram Trucks and pay a $2 billion penalty due to an emissions cheating scandal. The DOJ announced the details of a December settlement where Cummins is accused of using devices to evade emissions testing. The penalty includes a $1.67 billion civil fine and $325 million for remedial actions, marking the highest penalty under the Clean Air Act. Cummins stated the settlement involves no new financial commitments beyond those previously announced.
January 11, 2024 | 9:31 am
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Cummins Inc. is hit with a $2 billion penalty and must recall 600,000 Ram Trucks due to emissions violations. The settlement is already factored into their financial commitments, but the news could still negatively impact investor sentiment and stock price in the short term.
The news of the $2 billion penalty and recall is directly related to Cummins and is likely to affect investor confidence negatively, despite the company's statement that the settlement does not involve new financial commitments. The magnitude of the penalty and the recall could lead to concerns about future profitability and brand reputation, potentially causing a short-term decline in stock price.
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