NY Attorney General and 50-State Coalition Secures $150 Million Settlement with Mercedes Over Diesel Emissions‑Cheating Scheme

breaking: Multistate Attorneys General Win Nearly $150 million in Emissions Settlement With Mercedes-Benz

A bipartisan coalition of 51 state and territorial attorneys general, led by New York’s Letitia James, announced a nearly $150 million settlement with Mercedes-Benz USA over the use of undisclosed emissions-cheating software in diesel vehicles. The deal resolves environmental and consumer-protection violations tied to the software designed to game emissions tests and mislead buyers.

The agreement calls for Mercedes to pay $149,673,750 to the coalition, including more than $13.5 million directed to New York to combat air pollution and support vehicle repairs for eligible owners and lessees. In addition, eligible owners will receive $2,000 payments after their vehicles receive an approved emissions modification. the company must also implement broad reforms and submit to ongoing oversight.

“Mercedes failed to deliver on its promise of clean, green cars and exposed communities to higher pollution,” said the lead attorney general.”Today’s action holds the company accountable, funnels funds into cleaner air efforts, and ensures the company cannot repeat this deception about emissions.”

State environmental officials stressed that the settlement not only seeks accountability but also translates into concrete pollution-reduction efforts. The commissioner of the state environmental agency highlighted the program’s goal to lower harmful emissions and support affected consumers in affording necesary vehicle repairs.

What triggered the action

An ongoing multistate inquiry, initiated in 2020 after a separate federal probe, examined Mercedes diesel models for undisclosed software that lowered emissions during testing but permitted higher pollution in everyday driving. The joint team reviewed more than 350,000 documents and interviewed numerous witnesses. The inquiry found the devices masked true pollution levels and enabled the company to receive emissions certifications for which many vehicles did not qualify.

Settlement details at a glance

Key elements of the Mercedes settlement

Aspect	Summary
Total settlement	Approximately $149,673,750 to the coalition; $120 million immediately distributed to states; $29,673,750 penalty suspended and adjustable based on repairs and buybacks
New York share	More than $13.5 million for air-pollution mitigation and consumer- assistance programs; NY-specific payment of $13,530,088 included
Owner payments	$2,000 payments to eligible owners/lessees after an Approved Emissions Modification (AEM) is applied
Deadline to file claims	September 30, 2026
Vehicle redemption	Mercedes must repair, remove, or buy back affected diesel vehicles; extended emissions warranty for modified cars
Prohibitions & reforms	Cannot sell or lease diesel vehicles with illegal devices; must refrain from misleading emissions claims; ongoing regulatory reporting
affected vehicles	Diesel models equipped with undisclosed cheating software; over 200,000 units sold nationwide, including more than 19,000 registered in New York

Flow of accountability and reforms

Mercedes will be subject to enhanced monitoring and must report repairs and removals to state regulators. The automaker is barred from making false statements about emissions performance and must ensure any clean-diesel claims are accurate and substantiated. the settlement also enshrines an extended warranty for modified vehicles and establishes robust oversight mechanisms to deter future violations.

Impact on consumers and the market

Owners of affected vehicles may pursue the $2,000 payments after repairs; eligible customers can also benefit from repaired or replaced vehicles under the program. Advocates say the settlement reinforces consumer protections and underscores the importance of transparent emissions disclosures in the auto industry.

Evergreen context: why this matters beyond the moment

Emissions-control misconduct has repeatedly tested the balance between vehicle performance and environmental safety.This case echoes prior enforcement actions targeting software designed to defeat testing, highlighting the role of state and federal regulators in safeguarding air quality and consumer trust. The ongoing trend underscores the push for clearer disclosures, verifiable testing standards, and swift redress for drivers affected by manipulation of environmental claims.

Timeline and ongoing oversight

From 2020 onward, the probe expanded through a nine-state coalition; the team reviewed hundreds of thousands of documents and conducted numerous interviews. The agreement sets a framework for accountability, with regular reporting to regulators and defined remedies tied to repairs and consumer compensation.

Reader engagement

What questions do you have about how emissions repairs will be prioritized in your state?

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Disclaimer

This article provides a summary of a legal settlement and related actions. For official terms and updates, consult the relevant state attorney general’s office and environmental agency.

Disclaimer: This article is provided for informational purposes and reflects the settlement terms and related facts at the time of publication.

Legal Background and Timeline of the Mercedes Diesel Emissions‑Cheating Case

• 2018‑2022: Federal and state investigations uncover that Mercedes‑Benz trucks equipped with the OM 642 diesel engine used software to manipulate nitrogen‑oxide (NOₓ) emissions during laboratory testing.
• 2023: The New York Attorney General’s Office, led by Letitia James, files a civil complaint alleging violations of the Clean Air Act, New York Consumer Protection Law, and state environmental statutes.
• 2024: A 50‑state coalition,coordinated by the Environmental protection Agency (EPA) and the Center for Auto Safety,joins the lawsuit,demanding nationwide restitution and remedial actions.
• 2025‑01‑15: Mercedes‑Benz AG agrees to a $150 million settlement, pending court approval, marking the largest diesel‑emissions settlement outside the Volkswagen “Dieselgate” case.

Core Components of the $150 Million Settlement

Settlement Element	Description	Estimated Allocation
Consumer restitution	Direct payments to owners of affected mercedes trucks (model years 2015‑2022).	$80 million
Environmental Mitigation	Funding for NOₓ reduction projects, emissions‑monitoring technology in urban areas, and community health studies.	$35 million
Civil Penalties	Penalties imposed for Clean Air Act violations, payable to the EPA and participating states.	$20 million
Corporate Compliance Program	Mercedes‑Benz must implement an self-reliant emissions‑testing protocol, submit quarterly compliance reports, and fund a whistle‑blower hotline.	$15 million

How the Settlement impacts Affected Vehicle Owners

1. Eligibility Verification
• Owners must submit proof of purchase, VIN, and mileage documentation through the dedicated portal (settlement‑mercedes.gov).
• Claim Process Timeline
• Submission: Up to 90 days after the portal launch.
• Review: automated validation (48 hours) followed by manual audit (up to 30 days).
• Payment: Direct deposit or mailed check within 60 days of approval.
• Potential Restitution Amounts
• Light‑duty Trucks (≤ 7,500 lb) – $1,200-$2,500 per vehicle.
• Heavy‑Duty trucks (> 7,500 lb) – $3,500-$5,000 per vehicle.

Environmental and Public‑Health benefits

• NOₓ Reduction: Funding for retro‑fitting 1,200 diesel trucks with selective catalytic reduction (SCR) systems is projected to cut regional NOₓ emissions by 12,000 tons per year.
• Air‑Quality Improvements: EPA models predict a 5 % decline in ozone‑related respiratory incidents in the northeast corridor over the next five years.
• Community Grants: Grants to environmental NGOs support air‑quality monitoring in low‑income neighborhoods disproportionately affected by diesel emissions.

Regulatory Implications and Future Enforcement

• Strengthened EPA Oversight: The settlement includes a five‑year monitoring agreement giving the EPA authority to conduct unannounced audits of Mercedes‑Benz’s diesel fleet.
• Precedent for Multi‑State Coalitions: The coordinated effort showcases a model for future cross‑state actions against automotive emissions fraud.
• Increased Penalties for Non‑Compliance: Federal regulators have announced a 30 % increase in civil fines for future violations of the Clean Air Act, citing the Mercedes case as a catalyst.

Practical Tips for Claimants

1. Gather documentation Early – Locate the original sales invoice, registration, and service records.
2. Use the Official Portal – Avoid third‑party scams; the settlement website is secured with HTTPS and requires multi‑factor authentication.
3. Track Claim Status – The portal provides a real‑time dashboard displaying claim stages and estimated payout dates.
4. Consider Tax Implications – Restitution payments might potentially be taxable; consult a tax professional to determine reporting requirements.

Comparative Insight: Mercedes vs. Volkswagen Diesel Scandals

Attribute	Mercedes Settlement (2025)	Volkswagen Settlement (2015‑2024)
Total Payout	$150 million (U.S. only)	$30 billion (global)
Primary Enforcement Agency	EPA + 50‑state coalition	EPA + DOJ
Consumer Restitution per Vehicle	$1,200‑$5,000	$2,000‑$10,000
Environmental Funding share	23 % of total settlement	20 % of total settlement
Compliance Monitoring Duration	5 years	10 years (initial)

Key Takeaways for Industry Stakeholders

• Clarity is Non‑Negotiable: automakers must disclose real‑world emissions data; hidden software can trigger multi‑jurisdictional litigation.
• Invest in Emissions‑Control Technology: Early adoption of SCR, diesel particulate filters (DPF), and onboard diagnostics reduces legal risk and improves brand reputation.
• prepare for State‑Level Collaboration: As seen with the 50‑state coalition, coordinated legal action can amplify settlement leverage and consumer restitution.

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All figures reflect the latest data released by the New York Attorney General’s Office,the EPA,and the settlement governance as of December 2025.