Mercedes Benz to pay $5.5 million to resolve Arizona diesel advertising lawsuit

German automaker Mercedes Benz and auto supplier Robert Bosch LLC agreed to pay about $6 million to resolve Arizona's lawsuit over diesel advertising claims, the state said on Friday.

Under the proposed settlement, Mercedes Benz will pay $2.8 million in consumer restitution, and each qualifying Arizona consumer will receive up to $625 per vehicle, Arizona Attorney General Mark Brnovich said. The German automaker will pay $2.7 million in penalties, and Robert Bosch LLC will pay $525,000 in penalties, the state said.