Facts

The United States Environmental Protection Agency and the California Air Resources Board filed a complaint against defendants Daimler, A.G. and Mercedes-Benz USA, LLC alleging violations of Section 204 and Section 205 of the Clean Air Act.

PLAINTIFF'S CONTENTIONS: Plaintiffs contended that defendants installed undisclosed software functions and defeat devices in approximately 250,000 diesel vehicles that defendants sold to numerous consumers. These undisclosed software functions and defeat devise caused the diesel vehicles' emission control systems to perform less effectively which resulted into increased emission of oxides of nitrogen (NOx) when the vehicles were operated. NOx is known to be harmful air pollutant linked to cardiac and respiratory disease.

DEFENDANT'S CONTENTIONS: Defendant denied plaintiffs' contentions.

Result

Defendants agreed to pay a civil penalty of $875,000,000 for violating the statute. The United States will receive $743,750,000 of the settlement and the remaining $131,250,000 will be paid to CARB. In addition, defendant Daimler agreed to recall and repair the noncompliant vehicles and will offer extended warranty to consumers to repair the noncompliant vehicles. Defendants also separately settled with plaintiff CARB to mitigate any excess emissions of NOx from more than 36,000 noncompliant vehicles in California.

Other Information

Consolidated with: People of the State of California v. Daimler AG, Mercedes-Benz USA LLC, Case Number: 1:20-cv-02565. JUDGE: Emmet G. Sullivan