D.C., Maryland Secure Share of $149.6M Mercedes Emissions Deal

December 23, 2025

A multistate coalition of attorneys general has reached a $149. 6 million settlement with Mercedes-Benz USA and Daimler AG for allegedly deceiving consumers about diesel vehicle emissions between 2008 and 2016. The automakers allegedly installed illegal "defeat device" software in over 200,000 diesel vehicles that allowed cars to pass emissions tests while releasing significantly higher nitrogen oxide pollution during normal driving.

Who is affected

Approximately 4,000 vehicle owners in Maryland
Roughly 380 vehicle owners in the District of Columbia
Over 200,000 diesel vehicle owners across the United States who purchased Mercedes vehicles between 2008 and 2016
Residents exposed to excess nitrogen oxide pollution and smog
Participating states and territories (more than 40, including Alabama, Connecticut, Delaware, Georgia, Maryland, New Jersey, New York, South Carolina, Texas, and the District of Columbia)
Mercedes-Benz USA and Daimler AG

What action is being taken

Mercedes is paying $120 million immediately to participating states and jurisdictions
The company is repairing tens of thousands of vehicles to comply with emissions standards
Mercedes is providing $2,000 restitution payments to impacted vehicle owners who install approved emissions modification software
The company is providing extended warranties to affected owners
Mercedes is implementing a comprehensive consumer relief program

Why it matters

This settlement is significant because it holds a major corporation accountable for systematically deceiving consumers and government regulators about vehicle emissions for nearly a decade. The illegal defeat devices allowed vehicles to emit nitrogen oxides far above legal limits, contributing to air pollution, respiratory illnesses, and smog that affect public health. The case demonstrates that corporations cannot profit from environmental violations and consumer deception, sending a clear deterrent message to other automakers. Additionally, the settlement provides direct financial relief to affected consumers, ensures vehicles will be brought into compliance with air quality standards, and secures millions of dollars for environmental protection efforts.

What's next

An additional $29.6 million in suspended payments may be waived if Mercedes completes the comprehensive consumer relief program
Mercedes must comply with new reporting requirements going forward
The company is barred from future deceptive marketing or misrepresentations related to diesel emissions

Read full article from source: The Washington Informer