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Mercedes-Benz agrees to pay nearly $150 million to settle multistate emissions allegations

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Mercedes-Benz USA and parent company Daimer 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 contributes to smog.

The states alleged that Mercedes installed the devices because it couldn't reach design and performance goals.

Read more from CBS News.

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