Mercedes-Benz Cheated on Diesel Emissions for Years, DOJ Says

German automaker Daimler AG and its American subsidiary Mercedes-Benz USA LLC agreed Monday to settle allegations they violated U.S. and California emission rules in an agreement topping $1.5 billion in penalties and other costs.

Separately, Daimler said Monday it has agreed to pay $700 million to settle a U.S. class-action lawsuit, bringing the total related to the alleged violations to $2.2 billion.

The Environmental Protection Agency and Department of Justice filed the proposed federal settlement in U.S. District Court for the District of Columbia, in the latest instance of U.S. regulators bringing down the hammer on alleged emissions cheating in ...