Attorney General Tong Leads Nearly $150 Million Multistate Settlement with Mercedes-Benz USA and Mercedes-Benz AG Over Emissions Fraud

Press Releases

12/22/2025

Attorney General Tong Leads Nearly $150 Million Multistate Settlement with Mercedes-Benz USA and Mercedes-Benz AG Over Emissions Fraud

Connecticut to receive $4,989,276

(Hartford, CT) – Attorney General William Tong today led a coalition of 50 attorneys general announcing a $149,673,750 settlement with Mercedes-Benz USA and Mercedes-Benz AG for violating state laws prohibiting unfair or deceptive trade practices by marketing, selling and leasing vehicles equipped with undisclosed emissions defeat devices that illegally circumvented Connecticut’s strong emissions standards. The settlement also includes more than $200 million in potential consumer relief.

“Mercedes-Benz hid devices inside their vehicles to cheat emissions tests, knowingly pumping out toxic emissions far exceeding legal limits. Their deception hurt their customers and harmed air quality for all Americans, and we’re holding them accountable. This settlement, as with others previously reached with Volkswagen and Fiat Chrysler, sends millions of dollars back to states as well as comprehensive relief for consumers who purchased these defective vehicles. Connecticut led the nationwide coalition reaching today’s settlement and will continue to lead in protecting consumers from bad actors who defraud and deceive the American people,” said Attorney General Tong.

"Consumers deserve to know exactly what they are purchasing, and they should be able to reasonably assume that any new car they buy is in compliance with all laws and regulations," said Department of Consumer Protection Commissioner Bryan T. Cafferelli. "This deception was unfair to consumers and a clear violation of public trust. Thank you to the Attorney General's office for their work to hold companies accountable for their advertising and marketing practices."

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 defeat devices enabled vehicles to exceed legal limits of nitrogen oxides (NOx) emissions, a harmful pollutant that causes respiratory illness and contributes to the formation of smog. Mercedes 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.

Today’s settlement requires Mercedes-Benz USA and Mercedes-Benz AG to pay $120 million to the states 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.

Connecticut will receive $4,989,276 through today’s settlement. It is estimated that there are 3,181 impacted vehicles registered in Connecticut.

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

The companies must also comply with reporting requirements, reform their practices, and refrain from including a prohibition on any further unfair or deceptive marketing or sale of diesel vehicles, including misrepresentations regarding emissions and compliance.

Today’s settlement follows similar settlements reached previously between the states and Volkswagen, Fiat Chrysler and German engineering company Robert Bosch GmbH over its development of the cheat software. Automaker Fiat Chrysler and its subsidiaries paid $72.5 million to the states in 2019. Bosch paid $98.7 million in 2019. Volkswagen reached a $570 million settlement with the states in 2016.

The attorneys general of Connecticut, Delaware, and Maryland led the multistate investigation and settlement, and were assisted by Alabama, Georgia, New Jersey, New York, South Carolina, and Texas. The final settlement was also joined by Alaska, Arkansas, Colorado, the District of Columbia, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, 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.

Assistant Attorneys General Brendan Flynn, Scott Koschwitz, and Rebecca Quinn and Deputy Associate Attorney General Michael Wertheimer, Chief of the Consumer Protection Section and Deputy Associate Attorney General Matthew Levine, Chief of the Environment Section assisted the Attorney General in this matter.

Twitter: @AGWilliamTong

Facebook: CT Attorney General

Media Contact:

Elizabeth Benton
elizabeth.benton@ct.gov

Consumer Inquiries:

860-808-5318
attorney.general@ct.gov