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.
A $149.7 Million Multistate Deal
The payment stems from a $149.7 million multistate settlement reached Dec. 22 between Mercedes-Benz USA, 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 both buyers and regulators.
How the Alleged Defeat Devices Worked
According to the settlement, Mercedes-Benz installed undisclosed software defeat devices in certain diesel cars and vans built between 2008 and 2016. Those devices allegedly altered emissions controls during laboratory testing to meet regulatory standards, while allowing significantly higher emissions during real-world driving — meaning the vehicles released nitrogen oxide pollutants at levels exceeding legal limits, raising air quality concerns and potential respiratory health risks in the process.
Investigators determined that company officials were aware the software circumvented emissions regulations, even as the vehicles continued to be marketed and sold as environmentally friendly and fully compliant. State officials concluded the automaker had pursued performance, fuel efficiency, and maintenance goals it couldn’t actually achieve while meeting lawful emissions requirements.
What Connecticut and Other States Get
Under the agreement, Mercedes-Benz must pay $120 million to states immediately, with an additional $29.7 million remaining suspended and potentially 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 covers approximately 39,565 vehicles that hadn’t been repaired or permanently taken out of service by Aug. 1, 2023. Mercedes-Benz is required to install approved emissions modification software on each eligible vehicle at no cost to owners, and participating consumers will also receive a $2,000 payment per vehicle along with an extended warranty.
Part of a Bigger Industry Pattern
The agreement further requires Mercedes-Benz to reform its internal practices, comply with ongoing reporting requirements, and avoid future deceptive marketing or misrepresentation of diesel emissions. It 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 should be able to rely on automakers to comply with environmental laws and accurately represent how their vehicles actually perform.