Missouri Attorney General Catherine Hanaway announced a $150 million settlement with Mercedes-Benz USA, LLC and Mercedes-Benz Group AG over emissions fraud. Hanaway collaborated with 49 other attorneys general to address violations of state laws prohibiting unfair or deceptive trade practices. “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,” the statement from the Office of the Missouri Attorney General said.
The lawsuit arose from Mercedes’ use of defeat devices in diesel vehicles, which allowed the cars to meet emission standards during tests while exceeding limits under normal driving conditions. From 2008 to 2016, over 211,000 diesel passenger cars and vans with this software were sold or registered in the U.S. Mercedes marketed these vehicles as eco-friendly while not disclosing the presence of the defeat devices to regulators or consumers.
Missouri will receive over $3 million from the settlement, as part of a broader agreement benefiting multiple states. Mercedes-Benz USA LLC and Mercedes-Benz Group AG will pay $120 million to the states upfront, with an additional $29.6 million held in suspension pending the completion of a consumer relief program. The program covers approximately 10,931 affected vehicles in Missouri and includes the installation of approved emission modification software at the company’s expense.
Under the settlement, Mercedes must provide an extended warranty for affected vehicles and compensate owners $2,000 per qualifying vehicle. The company is also prohibited from engaging in deceptive marketing related to diesel vehicle emissions. The multi-state coalition, including states such as New York and California, led the effort to address consumer and environmental violations.
