Mercedes-Benz Group AG (OTC:MBGYY) is reportedly facing liability after a German court ruled against the company in a consumer class action case concerning diesel emissions reports.

The Stuttgart Appeals Court’s ruling, published Thursday, holds Mercedes-Benz Group AG responsible for equipping certain diesel cars with emissions-cheating devices, reported Bloomberg.

The case, initiated by consumer group VZBV three years ago and joined by 2,500 claimants, alleges manipulation of diesel engines to evade emission regulations.

Owners of affected Mercedes GLC and GLK models must individually pursue claims against the manufacturer for compensation, as direct payouts are not provided.

Mercedes-Benz Group AG intends to appeal the court’s decision, as per the report.

The European Union mandates emission standards for automobiles, including Euro 5 for vehicles since 2009 and Euro 6 for those manufactured since 2014.

While the court upheld the suit concerning Euro 6 standard vehicles, it dismissed claims related to Euro 5 standard models.

This lawsuit bears resemblance to VZBV’s case against Volkswagen AG (OTC:VWAGY), culminating in an €830 million ($895 million) settlement in 2020, regarding the diesel emission scandal.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image by Okan Caliskan from Pixabay