Mercedes Benz to pay $5.5 million to resolve Arizona diesel ad lawsuit (updated)

BOSCH

18/11/2022 17:26

(Adds details, earlier settlements)
    By David Shepardson
       WASHINGTON, Nov 18 (Reuters) - German automaker Mercedes
Benz  MBGn.DE  and auto supplier Robert Bosch LLC  BOSH.NS 
agreed to pay about $6 million to resolve Arizona's lawsuit over
diesel advertising claims, the state said on Friday.
    Under the proposed settlement, Mercedes Benz will pay $2.8
million in consumer restitution, and each qualifying Arizona
consumer will receive up to $625 per vehicle, Arizona Attorney
General Mark Brnovich said. The German automaker will pay $2.7
million in penalties, and Robert Bosch LLC will pay $525,000 in
penalties, the state said.
    "Arizona demands truth in advertising to assist consumers in
making the most informed decisions for themselves," Brnovich
said.
    Mercedes Benz denied the allegations and made no admissions
but said "with the settlement, the company takes another step
toward resolution of various diesel proceedings... and avoids
further costs of litigation and lengthy court actions."
    In 2020, the German automaker agreed to pay $2.2 billion to
resolve a U.S. government diesel emissions cheating
investigation and claims from 250,000 U.S. vehicle owners.
    The settlement included an $875 million civil penalty levied
under the Clean Air Act and $546 million to fix the polluting
vehicles and offset excess emissions.
    A Justice Department investigation into the Mercedes
emissions issue remains open and a number of U.S. states have
ongoing environmental and consumer protection investigations,
the company said in its annual report in March.
    Mercedes Benz -- which was then known as Daimler AG --
agreed in 2020 to pay 250,000 owners up to $3,290 each to get
polluting vehicles repaired.
    Diesel vehicles have come under harsh scrutiny in the United
States since Volkswagen AG  VOWG_p.DE  admitted in 2015 to
installing secret cheating software on 580,000 U.S. vehicles. VW
paid more than $30 billion to resolve investigations and buyback
vehicles.
 (Reporting by David Shepardson; Editing by Mark Porter and
Emelia Sithole-Matarise)
 ((David.Shepardson@thomsonreuters.com; 2028988324;))