Mercedes-Benz Australia facing diesel cheat device class action
Local case follows aftermath of $1.3b settlement in US and ongoing action in GermanyMercedes-Benz Australia is facing a class action lawsuit for the alleged installation of emissions cheat devices in diesel vehicles produced between 2008 and 2018.
The action was filed with the Victorian Supreme Court yesterday by GMP Law, which claims the premium German car-maker’s local division could be forced to fork out “$100’s of millions” in damages should it lose the case.
In a press release issued on Monday, GMP Law said it estimates “a minimum of 10’s of thousands of Mercedes diesel vehicles” sold in Australia between January 1, 2008 and December 31, 2018 could be spewing out more diesel emissions than advertised thanks to a ‘cheat device’ fitted for regulatory testing of the models.
The action is specifically seeking damages for “compensation for the loss of value of affected vehicles” and ‘punitive damages’.
GMP Law said it is in contact with US law firm Hagens Berman Sobol Shapiro, which successfully lodged and won a similar class action in North America last decade.
That particular case involved some 250,000 vehicles and was settled in September 2020, costing Mercedes-Benz USA $US875 million ($A1.32b) in damages. A similar action is currently before the courts in Germany.
“This information sharing arrangement between HB and GMP Law is a great step forward towards achieving just compensation for those consumers in Australia which have been affected by Mercedes’ ‘cheat devices’,” GMP Law chairman Gerard Malouf said.
“Based upon the findings from the numerous international court proceedings as well as government investigations, we strongly believe Mercedes has been a serious case to answer!
“We intend to stand up for the rights of all consumers to protect their health, financial interests and the environment.
“We will run this case at our own cost without any risk to class members and will seek a group cost order without a legal funder to ensure class members receive the absolute maximum in damages from any award or settlement.”
Previous and current owners of affected vehicles – whether new or used – are eligible to register as part of the action, however, a formal list of relevant models is yet to be published.
carsales has contacted Mercedes-Benz Australia for comment and will update this report if we receive a response.
GMP Law recently filed a similar class action against Hino Motor Sales Australia and Hino Motors Limited.
And Toyota is staring down the barrel of yet another similar class action that could cost it upwards of $6 billion if circa-500,000 Toyota HiLux, LandCruiser, Prado and RAV4 vehicles are found to be fitted with cheat devices.
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