Daimler AG to Settle on Emission Cheating Allegations

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Sept. 16, 2020—Automaker Daimler AG and its subsidiary, Mercedes-Benz USA, have agreed to pay the U.S. government and California state regulators $1.5 billion to resolve emissions cheating allegations, reports the Associated Press.

According to the report, Daimler is accused of violating environmental laws by using “defeat device software” to avoid emissions testing and to have sold about 250,000 cars and vans in the U.S. with diesel engines that did not comply with state and federal laws.

The settlement, which includes civil penalties, will require Daimler to fix the vehicles as well as pay $700 million to settle the U.S. consumer lawsuits.

Daimler has denied all allegations in the emission cheating scandal as well as any liability, according to a statement from the company.

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