Attorney General Hanaway Secures Nearly $150 Million Settlement With Mercedes-Benz Over Emissions Fraud

JEFFERSON CITY, Mo. – Today, Missouri Attorney General Catherine Hanaway joined a coalition of 50 attorneys general announcing a $149,673,750 settlement with Mercedes-Benz USA, LLC and Mercedes-Benz Group AG for violating states’ laws prohibiting unfair or deceptive trade practices by marketing, selling, and leasing vehicles equipped with illegal and undisclosed emissions defeat devices designed to circumvent emissions standards.

“We will always stand up for our citizens when any corporation breaks the law. Our Office will not tolerate those who violate our safety regulations and put public health at risk,” said Attorney General Hanaway. “I am proud to partner with other states’ attorneys general to secure this settlement with Mercedes-Benz after it equipped products with the means to deceive testing requirements. No corporation is above the law, and we will continue fighting to protect Missourians.”

Beginning in 2008 and continuing to 2016, the states allege Mercedes manufactured, marketed, advertised, and distributed nationwide more than 211,000 diesel passenger cars and vans equipped with software defeat devices that optimized emission controls during emissions tests, while reducing those controls outside of normal operations. The states allege the defeat devices enabled vehicles to far exceed many legal limits of nitrogen oxides (NOx) emissions, a harmful pollutant that causes respiratory illness and contributes to the formation of smog. Mercedes allegedly engaged in this conduct to achieve design and performance goals, such as increased fuel efficiency and reduced maintenance that it was unable to meet while complying with applicable emission standards. Mercedes concealed the existence of these defeat devices from state and federal regulators and the public. At the same time, Mercedes marketed the vehicles to consumers as “environmentally-friendly” and in compliance with applicable emissions regulations.

Missouri will receive $3,153,058.85 through today’s settlement. The settlement requires Mercedes-Benz USA, LLC and Mercedes-Benz Group AG to pay $120 million to the states immediately upon the effective date of the settlement. An additional $29,673,750 will be suspended and potentially waived pending completion of a comprehensive consumer relief program. Approximately 10,931 vehicles that were sold or registered in Missouri were impacted.

The consumer relief program extends to the estimated 39,565 vehicles, which, as of August 1, 2023, had not been repaired or permanently removed from the road in the United States. Mercedes must bear the cost of installing approved emission modification software on each of the affected vehicles. The company must provide consumers with an extended warranty and will pay consumers $2,000 per subject vehicle.

The company must also comply with reporting requirements and reforms to their practices, including a prohibition on any further engagement in unfair or deceptive marketing or sale of diesel vehicles, misrepresentations regarding emissions and compliance.

In addition to Missouri, the attorneys general of Alabama, Connecticut, Delaware, Georgia, Maryland, New Jersey, New York, South Carolina, and Texas led today’s settlement, joined by Alaska, Arkansas, Colorado, the District of Columbia, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and Puerto Rico.