Mercedes-Benz Settles for Nearly $150M Over Emissions Cheating Allegations

New York Attorney General Letitia James and a bipartisan coalition of 50 other attorneys general announced a nearly $150M settlement with Mercedes-Benz USA, resolving violations of environmental and consumer protection laws stemming from the company's use of illegal emissions-cheating software. A multistate investigation led by Attorney General James and eight other attorneys general found that Mercedes equipped hundreds of thousands of diesel vehicles with undisclosed software designed to cheat emissions tests, mislead consumers, and illegally pollute communities nationwide. Under the settlement, Mercedes will pay $149,673,750 to the coalition, including more than $13.5M to New York to fight air pollution, and provide $2,000 payments to eligible owners and lessees whose vehicles receive the required emissions repairs. The company must also undertake broad corrective actions to prevent future misconduct and comply with strict oversight requirements.