Mercedes-Benz Will Pay $700M To Settle Emissions Fraud Class Action Lawsuit

Mercedes-Benz U.S. and German parent company Daimler AG have agreed to pay $700 million to resolve a class action lawsuit that claimed the automaker cheated emissions tests.

The class action lawsuit accused Mercedes-Benz of false advertising and misleading consumers about the true nature of its clean diesel engines, alleging that the company designed the Mercedes BlueTEC engine emission system so that it would shut off when the air temperature is below 50 degrees Fahrenheit without telling the public.

Included in the Class are all current and former U.S. owners or lessees who registered their vehicles on or before the settlement was announced. Also included is anyone who began owning or leasing and registered their vehicle for which an approved emissions modification (AEM) hasn’t been installed.

The following Mercedes BlueTEC vehicles are subject to the settlement:

• E250 (2014-2016)
• E350 (2011-2013)
• GL320 (2009
• GL350 (2010-2016)
• GLE300d (2016)
• GLE350d (2016)
• GLK250 (2013-2015)
• ML250 (2015)
• ML320 (2009)
• ML350 (2010-2014)
• R320 (2009)
• R350 (2010-2012)
• S350 (2012-2013)
• Mercedes-Benz Sprinter, 4-cylinder (2014-2016)
• Freightliner Sprinter, 4-cylinder (2014-2016)
• Mercedes-Benz Sprinter, 6-cylinder (2010-2016)
• Freightliner Sprinter, 6-cylinder (2010-2016)

In addition to receiving AEMs and a transferable extended modification warranty, Class Members submitting valid claims are eligible to receive cash compensation. 

Current Mercedes BlueTEC vehicle owners and lessees who receives an AEM and submit a valid claim are expected to receive $3,290.

Eligible former owners and lessees will receive up to $822.50 for each vehicle, “which will be divided equally among the Eligible Former Owners and Eligible Former Lessees who submit Valid Claims related to the same vehicle.”

Eligible “Post-Announcement” owners and lessees whose vehicle receives an AEM and who submit a valid claim will receive $2,467.50 per vehicle.

In addition, eligible Class Members may receive payments for deferred AEM availability, “late submissions of emissions modification proposal reports by Mercedes to the regulators” and any reclassification of their vehicles to a lesser emissions standard.

“If an AEM for a Subject Vehicle is unavailable within a grace period beyond the deadline, Class Members who own or lease an affected Registered Subject Vehicle on that date will be eligible for a substantial payment pegged to the Owner/Lessee Payment in accordance with the Settlement Agreement, based on model year from 30% up to 80%,” the settlement says.

If an AEM is not available before the deadline and no vehicle in that Emissions Modification Category can be re-registered in the owner’s state because the AEM is unavailable and the owner files a claim within 60 days of the deadline, Mercedes will offer to buy back the vehicle

Additionally, if an AEM causes reduced performance in the vehicle, Class Members will be eligible for a payment of $325 to $650, depending on how substantial the reduction is.

If the AEM causes the vehicle owner to have to refill the diesel emission fluid more frequently, they could receive another $75.

Class Counsel will apply for an award of attorneys’ fees in the amount of $80,200,000, plus up to $3,200,000 in expenses.

According to the company’s website, the Mercedes-Benz BlueTEC engines control “emissions by driving exhaust gases through filters to the catalytic converter, where they mix with a new water-based additive called AdBlue. This process converts polluting nitrogen oxides into harmless nitrogen and water. The result is a significant reduction in soot and pollutants, making the BlueTEC engine smoother, more efficient, quieter — yet also more robust — than its predecessors.”

The company claims its Mercedes BlueTEC vehicles get 20% to 30% better fuel efficiency than similarly sized gas-powered vehicles.

“BlueTEC vehicles now meet the emissions standards of all 50 states, including the 10 states with the most stringent pollution laws,” the site says.

A similar class action lawsuit is underway in the United Kingdom.

That case has been brought against Daimler AG in Liverpool’s High Court and alleges Mercedes-Benz installed devices in diesel vehicles to cheat emissions tests. Nearly a million of the company’s vehicles in Britain may be affected.

Is your vehicle affected by the Mercedes BlueTEC class action settlement? Let us know in the comments.

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The plaintiffs are represented by James E. Cecchi of Carella, Byrne, Cecchi, Olstein, Brody & Angello PC; Christopher A. Seeger and Jennifer R. Scullion of Seeger Weiss LLP; and Steve W. Berman, Sean R. Matt, Andrew M. Volk and Shelby R. Smith of Hagens Berman Sobol Shapiro LLP.

The Mercedes BlueTEC Class Action Lawsuit is In Re: Mercedes-Benz Emissions Litigation, Case No. 2:16-cv-00881-KM-ESK, in the U.S. District Court for the District of New Jersey.

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