AGs Drive Home $150M Deal With Mercedes Over Diesel Emissions

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  • A bipartisan coalition of 50 AGs, co-led by Connecticut AG William Tong, secured a $150 million settlement with Mercedes-Benz USA, LLC and Mercedes-Benz Group AG (collectively, “Mercedes”) to resolve allegations that the companies engaged in unfair or deceptive trade practices related to diesel vehicle emissions.
  • According to the settlement, Mercedes allegedly equipped certain diesel vehicles with defeat-device technology that was designed to circumvent federal and state emissions standards, concealed this software from regulators and the public, and marketed the vehicles as environmentally friendly and compliant with emissions laws.
  • Under the settlement, Mercedes will pay $120 million to the participating states upon the settlement’s effective date, with an additional approximately $30 million suspended and subject to potential waiver based on completion of a consumer relief program. The settlement also includes more than $200 million in potential consumer relief, including approved emissions modification software, extended warranties, and payments per eligible vehicle; and it further requires Mercedes to reform its practices, comply with reporting obligations, and refrain from future unfair or deceptive emissions-related marketing or sales practices.
  • We previously covered a similar settlement that California AG Rob Bonta and the California Air Resources Board reached with Robert Bosch LLC and its parent company to resolve allegations related to Bosch’s role in providing emissions defeat-device technology that was used in Volkswagen and Fiat Chrysler vehicles.
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