Connecticut is set to receive nearly $5 million as part of a nationwide settlement resolving allegations that Mercedes-Benz engaged in a large-scale emissions fraud scheme involving diesel vehicles sold across the United States.
The payment stems from a $149.7 million multistate settlement reached Dec. 22 between Mercedes-Benz USA, its parent company Daimler AG, and a coalition of attorneys general from all 50 states. Connecticut Attorney General William Tong played a leading role in the agreement, which concluded that the automaker violated consumer protection laws by misleading buyers and regulators.
According to the settlement, Mercedes-Benz installed undisclosed software defeat devices in certain diesel cars and vans manufactured between 2008 and 2016. These devices altered emissions controls during laboratory testing to meet regulatory standards, while allowing significantly higher emissions during real-world driving. As a result, the vehicles released nitrogen oxide pollutants at levels exceeding legal limits, contributing to air quality concerns and potential respiratory health risks.
Investigators determined that company officials were aware the software circumvented emissions regulations. The vehicles were nonetheless marketed and sold as environmentally friendly and compliant with emissions standards. State officials concluded that the automaker pursued performance, fuel efficiency, and maintenance goals it could not achieve while meeting lawful emissions requirements.
Under the agreement, Mercedes-Benz must pay $120 million to states immediately. An additional $29.7 million will remain suspended and may be waived if the company fully complies with a consumer relief program. Connecticut’s share totals $4,989,276, reflecting an estimated 3,181 affected vehicles registered in the state.
Nationally, the settlement applies to approximately 39,565 vehicles that had not been repaired or permanently removed from service by Aug. 1, 2023. Mercedes-Benz is required to install approved emissions modification software on each eligible vehicle at no cost to owners. Participating consumers will also receive a $2,000 payment per vehicle and an extended warranty.
The agreement further requires the company to reform internal practices, comply with reporting requirements, and avoid any future deceptive marketing or misrepresentation of diesel vehicle emissions.
The settlement follows similar enforcement actions over the past decade involving Volkswagen, Fiat Chrysler, and Robert Bosch GmbH, which collectively paid hundreds of millions of dollars to states over emissions-related misconduct.
State officials say the resolution reinforces the expectation that consumers can rely on automakers to comply with environmental laws and accurately represent vehicle performance.
