(Reuters) — German automaker Mercedes Benz and auto supplier Robert Bosch LLC have agreed to pay a total of about $6 million to settle a lawsuit over diesel advertising claims, the state of Arizona said on Friday.
Under the proposed settlement, Mercedes Benz will pay $2.8 million in consumer restitution, and each eligible consumer in Arizona will receive up to $625 per vehicle, Arizona Attorney General Mark Brnovich said.
“Arizona requires truth in advertising to help consumers make the most informed decisions for themselves,” he said.
Mercedes Benz, which denied the allegations and pleaded not guilty, will also pay $2.7 million in punitive damages, and Robert Bosch LLC, which also said it had not admitted liability or wrongdoing, will pay $525,000 in punitive damages, Arizona said .
“With the settlement, the company takes another step towards a resolution of various diesel lawsuits … and avoids further costs of litigation and protracted trials,”; Mercedes Benz said in a statement.
Bosch confirmed the settlement related to the engine control units of some Mercedes diesel vehicles.
In 2020, Mercedes Benz agreed to pay $2.2 billion to settle a US government diesel emissions cheating investigation and claims made by 250,000 US 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.