The Stuttgart, Germany-based automaker said late Thursday that the agreement with various US authorities concerns civil and environmental claims involving about 250,000 diesel cars and vans.

The company said the civil cases related to a a consumer class-action lawsuit pending before the US District Court for the District of New Jersey.

Daimler said in a statement that the settlement will result in costs of about $1.5 billion, while the civil suit will incur a one-off charge of about $700 million. It estimated that “further expenses of a mid three-digit-million” euros would be required to fulfill requirements of the settlements.

Daimler said its board of management and the supervisory boards of Daimler and Mercedes-Benz approved the proposed settlements, but noted that they are subject to final approval by the relevant authorities and courts.

Like rival Volkswagen and other automakers, Daimler was caught advertising lower emissions for its diesel vehicles than they actually produced.