Caterpillar Settles with Justice Department Over Emissions Violations

Caterpillar Inc., the world’s largest construction and mining equipment manufacturer, has agreed to pay $2.55 million to resolve a U.S. lawsuit that accused it of selling engines for on- and off-road vehicles that violated environmental laws, Bloomberg Business Week is reporting.

Under a consent decree, Caterpillar also agreed to recall noncompliant engines and install required equipment, the U.S. Justice Department said in a statement.

The Justice Department said, in a lawsuit, that Caterpillar sold more than 590,000 engines that didn’t conform to Environmental Protection Agency standards, in violation of the National Emission Standards Act. The engines were shipped to equipment manufacturers from February 2002 through November 2006, the complaint says. The U.S. said the engines weren’t equipped with fuel-programming software required for EPA certification.

“As the decree indicates, Caterpillar denies any wrongdoing, but does agree that the decree represents a good-faith effort between the parties to resolve their differences and avoid potentially lengthy litigation,” a Caterpillar spokesperson said in a statement. “Caterpillar is committed to following the terms of the decree.”

Included in the settlement is a $510,000 civil penalty to the California Air Resources Board for the sale of improperly configured engines in California.

Caterpillar said it cooperated fully with the EPA, CARB and the Justice Department.