Mercedes to Pay $150 Million for Secret "Defeat Devices" in U.S. Cars

Mercedes-Benz has agreed to pay nearly $150 million to settle allegations it cheated U.S. emissions tests. The settlement involves 49 U.S. states and the District of Columbia. State authorities accused the automaker of secretly installing illegal software in many of its diesel vehicles. This software, known as a "defeat device," could sense when a car was undergoing an official emissions test. During testing, the vehicles would run cleanly to meet legal limits. In normal driving, however, the software allegedly turned off key pollution controls. This allowed the cars to emit far higher levels of harmful nitrogen oxides. The settlement covers roughly 250,000 Mercedes-Benz diesel vehicles sold between 2009 and 2016. Mercedes-Benz USA and its parent company, Daimler AG, did not admit to any wrongdoing as part of the agreement. Most of the settlement money will go to state attorneys general and for civil penalties. A separate class-action lawsuit from vehicle owners was previously settled for over $700 million.