(Reuters) — German automaker Mercedes Benz and auto supplier Robert Bosch LLC have agreed to pay a total of about $6 million to resolve a lawsuit over diesel advertising claims, the state of Arizona said 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.
“Arizona demands truth in advertising to assist consumers in making the most informed decisions for themselves,” he said.
Mercedes Benz, which denied the allegations and made no admissions, will also pay $2.7 million in penalties, and Robert Bosch LLC, which also said it had not admitted liability or wrongdoing, will pay $525,000 in penalties, Arizona 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,” Mercedes Benz said in a statement.
Bosch confirmed the settlement related to the engine control units for certain Mercedes diesel vehicles.
In 2020, Mercedes Benz 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.