New York Attorney General Letitia James and a bipartisan coalition of 50 other attorneys general today announced a nearly $150 million settlement with Mercedes-Benz USA (Mercedes), 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 $13.5 million 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.
“Mercedes promised New Yorkers clean, green cars, but instead sold vehicles that polluted our air and put public health at risk,” said Attorney General James. “For nearly a decade, Mercedes misled regulators and consumers while its vehicles spewed toxic emissions into our communities. Today’s settlement holds Mercedes accountable, delivers millions of dollars to protect New York’s environment, and ensures that this company never again deceives the public about its emissions.”
Attorney General James and the coalition launched an investigation in 2020 following the conclusion of a similar federal investigation. As part of a nine-state executive committee, the Office of the Attorney General (OAG) reviewed more than 350,000 documents and interviewed numerous witnesses. The coalition found that Mercedes installed undisclosed software in its diesel vehicles that masked the true level of pollution they produced. These devices artificially lowered emissions during government testing, but in normal driving conditions, the vehicles emitted far higher levels of harmful pollutants, sometimes up to 30 or 40 times the legal limit. This unlawful software enabled Mercedes to obtain emissions certifications that the vehicles did not actually qualify for…