September 14, 2020

German automaker Daimler AG and its U.S. subsidiary Mercedes-Benz USA, LLC will pay $1.06 billion and undertake a recall valued at $436 million to resolve claims that they violated the Clean Air Act and California law in allegedly manufacturing and selling diesel automobiles between 2009 and 2016 that had undisclosed auxiliary emission control devices and defeat devices.  These devices caused the vehicles to appear to pass emissions requirements during testing despite the fact that during ordinary usage the vehicles produced NOx emissions above compliant levels.  The recall and repair program requires defendants to bring the vehicles into compliance with applicable emissions standards by removing all defeat devices from the affected vehicles, replacing hardware, and updating software.  The total monetary settlement consists of $875 million in civil penalties, $70.3 million in other penalties, and $110 million to fund mitigation projects in California.  Defendants also agreed to implement corporate compliance reforms.  DOJ; CA

Tagged in: Environmental Fraud,