UK lawyers welcome Daimler agreement to pay $2billion settlement in US emissions scandal
Updated: Aug 15, 2020
Mercedes car owners in the UK are one step closer to receiving compensation over alleged cheating devices according to law firm Leigh Day, after the German car manufacture announced plans to settle cases in the US.
The parent company of Mercedes-Benz, Daimler AG, decided in principle yesterday to settle US regulatory and civil class action lawsuits over cheating on diesel emissions tests.
As part of the US settlement, Daimler is putting aside $1.5 billion dollars for the settlement with the authorities, and $700 million for the class action lawsuit.
These settlements will be subject to final approval of the relevant authorities and courts.
More than 200,000 car owners in England and Wales are affected by the mandatory recall set in motion in June 2018 by the German Transport Authority (KBA).
The recall affects certain Daimler vehicles manufactured between August 2011 and September 2018 which the KBA concluded were fitted with a ‘defeat device’ that could detect when engines were being tested and change the performance to improve results.
Leigh Day, Joint Lead Solicitors in the Volkswagen Emission Litigation, have now been approached by more than 25,000 Mercedes owners.
The claims are being investigated on behalf of people who lease or own Mercedes vehicles and could be worth up to 75 per cent of the purchase price for each driver.
Leigh Day is also Joint Lead Solicitors in similar emissions litigation on behalf of UK Volkswagen owners, who recently won the first round of their emissions case against the car manufacturer in the UK High Court.
It is estimated that Volkswagen have paid $33.6 billion in costs related to the cheating scandal.
Daimler argues its emissions technology complied with the rules and that its case was different from VW.
Bozena Michalowska, Head of the Consumer Law Team at Leigh Day, said: “This latest decision by Daimler is yet another indication that drivers were deliberately misled over the environmental performance of their vehicles.
“These were advertised as being more environmentally friendly with lower NOx emissions and unsuspecting drivers believed that, by purchasing these cars, they were reducing their carbon footprint.
“We hope that Daimler will not repeat the mistakes of its rivals and will settle this case as quickly as possible.”
