Mercedes-Benz Settles Diesel Emissions Claims for $149.6M

Mercedes-Benz has agreed to pay up to $149.6 million to settle allegations from a coalition of U.S. attorneys general that the automaker installed software in more than 211,000 diesel vehicles to evade emissions standards. The settlement, announced Monday by the bipartisan group representing nearly all states, resolves claims stemming from vehicles sold between 2008 and 2017.

The coalition accused Mercedes-Benz USA and its parent company, Daimler AG, of equipping diesel passenger cars and vans with undisclosed software devices, known as auxiliary emission control devices. These mechanisms optimized pollution controls during regulatory testing but deactivated or reduced them during everyday driving, allowing the vehicles to emit nitrogen oxides at levels up to 30 or 40 times the legal limit. Nitrogen oxides contribute to smog formation and respiratory health issues. Investigators determined that Mercedes used the software to meet performance and fuel efficiency targets without fully complying with emissions rules, while concealing the devices from regulators and consumers.

The states further alleged that Mercedes marketed the affected models, including versions of the E-Class,...