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General Motors (GM) - Get General Motors Company Report was accused today of implementing devices designed to cheat diesel emissions tests, similar to those used by Volkswagen (VLKAY) , Reuters reports.

The so-called "defeat devices" were allegedly placed into hundreds of thousands of its diesel trucks so that they could pass federal emissions tests.

The proposed class-action lawsuit, filed in the federal court in Detroit, is on behalf of people who together own or lease over 705,000 Silverado and Sierra diesel trucks from the 2011 to 2016 model years.

It seeks damages, including possible refunds or lost resale value as well as punitive damages.

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GM has called the allegations "baseless" and maintains that its engines meet EPA and CARB standards.

 RBC Capital estimated that the diesel variant of GM pickups named in the suit represent about 12% of GM's full-size pickups. 

Shares of the Detroit-based automaker were lower over 2.3% during midday trading on Thursday.

Stocks have rebounded following a sharp sell off last week. Jim Cramer believes the rebound is real and gives investors advice on how to play the market going forward.