The settlement resolves claims by multiple U.S. states that Mercedes-Benz vehicles were equipped with undisclosed software designed to circumvent emissions standards, allowing higher pollution levels during real-world driving while appearing compliant in laboratory tests.

According to the coalition, between 2008 and 2016, the German automaker equipped more than 211,000 diesel passenger cars and vans with software devices that optimized emission controls during tests but reduced the controls during normal operations. The devices enabled vehicles to far exceed legal limits for nitrogen oxides, a pollutant that can cause respiratory illnesses and contribute to smog.

The States alleged that Mercedes installed the devices because it couldn't reach design and performance goals, such as fuel efficiency, while complying with emissions standards. The automaker allegedly concealed the devices from state and federal regulators and the public while marketing the vehicles as “environmentally friendly” and compliant with emissions standards.

Mercedes-Benz USA and parent company Daimler AG have agreed to pay $149.6 million to settle allegations that the automaker secretly installed devices in hundreds of thousands of vehicles to pass emission tests, a coalition of attorneys general announced Monday.

According to the coalition, between 2008 and 2016, the German automaker equipped more than 211,000 diesel passenger cars and vans with software devices that optimized emission controls during tests but reduced the controls during normal operations. The devices enabled vehicles to far exceed legal limits for nitrogen oxides, a pollutant that can cause respiratory illnesses and contribute to smog.

The States alleged that Mercedes installed the devices because it couldn't reach design and performance goals, such as fuel efficiency, while complying with emissions standards. The automaker allegedly concealed the devices from state and federal regulators and the public while marketing the vehicles as “environmentally friendly” and compliant with emissions standards.

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Daimler AG and Mercedes-Benz USA already agreed in 2020 to pay $1.5 billion to the U.S. government and California State regulators to resolve the emissions cheating allegations.

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Fifty attorney generals, including the attorney generals of the District of Columbia and Puerto Rico, made up the coalition announced Monday. California was not part of the group.

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Mercedes-Benz USA and parent company Daimler AG have agreed to pay $149.6 million to settle allegations that the automaker secretly installed devices in hundreds of thousands of vehicles to pass emission tests.