CRIME & LAW

US States Secure Over $149.6M Settlement From Mercedes-Benz

PUBLISHED Dec 22, 2025, 3:07 PM ET

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US States Secure Over $149.6M Settlement From Mercedes-Benz

Media Bias Meter

Sources: 11

Center 82%

Right 18%

Sources: 11

Madison, Wis. A coalition of 50 state attorneys general announced Monday that Mercedes‑Benz USA and parent company Daimler AG agreed to pay $149.6 million to resolve allegations they equipped more than 211,000 diesel vehicles with software defeat devices that reduced emissions controls during normal driving. The settlement requires Mercedes to pay $120 million to states immediately, offer extended warranties nationwide, provide $2,000 per affected vehicle for eligible owners, and comply with reporting and reform requirements; $29.7 million is suspended pending consumer relief and environmental remediation. The agreement remains subject to court approval. Based on 11 articles reviewed and supporting research.

By Shahbaz A. | JQJO News

Timeline of Events

2008–2016: Mercedes allegedly equipped over 211,000 diesel vehicles with defeat-device software.
2020: Daimler and Mercedes previously settled related diesel-emissions claims in a separate large agreement.
Aug. 1, 2023: Wisconsin reported over 39,000 affected vehicles remained unfixed or on roads.
Dec. 22, 2023: A coalition of 50 state attorneys general announced a $149.673M settlement with Mercedes and Daimler.
Post-announcement: Mercedes must pay $120M immediately, offer extended warranties and $2,000 per affected vehicle; $29.673M suspended pending consumer relief program completion and court approval.

Media Bias

Articles Published:: 11
Right Leaning:: 2
Left Leaning:: 0
Neutral:: 9
Distribution:: Left 0%, Center 82%, Right 18%

Who Benefited

State governments will receive immediate settlement payments and allocation shares, while eligible vehicle owners may receive extended warranties and $2,000 per subject vehicle under the consumer relief program and related remedies.

Who Impacted

Consumers who bought affected diesel vehicles and communities exposed to excess nitrogen-oxide emissions experienced increased pollution exposure, potential health impacts, diminished vehicle value, and Mercedes faces reputational and financial consequences from the allegations and settlement.