Shares of Harley-Davidson (HOG Quick QuoteHOG - Free Report) fell as low as 7% before recovering on Thursday on news that the company agreed to pay a $15 million settlement with the Environmental Protection Agency (EPA). The EPA had filed a complaint over the company’s “super tuners” which bolstered power but released harmful emissions.

Based in Milwaukee, WI, Harley-Davidson is an American motorcycle manufacturer. According to the EPA, the company sold about 340,000 of the tuners, and more than 12,000 motorcycles of various models with the tuners pre-installed.

Of the $15 million settlement, $12 million will be paid as civil penalty while the other $3 million will be spent on a project to mitigate air pollution by replacing conventional woodstoves with cleaner-burning models.

“This settlement is not an admission of liability but instead represents a good faith compromise with the EPA on areas of law we interpret differently, particularly EPA's assertion that it is illegal for anyone to modify a certified vehicle even if it will be used solely for off-road/closed-course competition,” said Ed Moreland, Harley-Davidson's Government Affairs Director.

As per the deal, the company will buy back all of the devices and discontinue future sales of the product.

Shares of Harley-Davidson are up 19.6% year-to-date, but the company has seen numerous downward earnings estimate revisions for the foreseeable future.

Current quarter estimates stand at $0.65 in earnings per share, down from the $0.70 estimate of 60 days ago. Current fiscal-year estimates have slipped nine cents to $3.88 as well.

Harley-Davidson currently sits at a Zacks Rank #3 (Hold).

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