Attorney General Ellison reaches settlement with Mercedes-Benz USA over emissions fraud
Eligible consumers have until August 2026 to have approved emission-modification software installed for free and receive $2K payment; 1,600 vehicles registered in Minnesota are affected by settlement
Coalition of 50 attorneys general wins $150M settlement nationwide; Minnesota to receive nearly $500K
December 22, 2025 (SAINT PAUL) — Attorney General Keith Ellison and the Minnesota Pollution Control Agency (MPCA) today joined a bipartisan coalition of 50 attorneys general in announcing a $149.7 million settlement with Mercedes-Benz USA and parent company Mercedes-Benz Group AG for violating state laws prohibiting unfair sales conduct, deceptive trade practices, and altering or tampering with motor vehicle air pollution control systems, by marketing, selling and leasing vehicles equipped with illegal and undisclosed emissions defeat devices designed to circumvent emissions standards. Minnesota’s share of the settlement is approximately $474,000.
The settlement also offers relief to the owners of the estimated 39,565 vehicles that as of August 1, 2023, had not been repaired or permanently removed from the road in the United States. Mercedes must bear the cost of installing approved emission-modification software on each of the effected vehicles. The company must provide consumers with an extended warranty and pay consumers $2,000 per eligible vehicle.
Approximately 1,642 vehicles affected by this settlement are registered in Minnesota. Those that are still on the road and have not yet been repaired are eligible to participate in this settlement. Eligible consumers can take advantage of the terms of the settlement by installing approved emission-modification software in their vehicle by August 31, 2026, and submitting a claim to Mercedes for the cash incentive payment by September 30, 2026.
Attorney General Ellison and the bipartisan coalition allege that starting in 2008 and continuing to 2016, Mercedes manufactured, marketed, advertised, and distributed nationwide more than 211,000 diesel passenger cars and vans equipped with software defeat devices that optimized emission controls during emissions tests, while reducing those controls outside of normal operations. The states allege the defeat devices enabled vehicles to far exceed many legal limits of nitrogen oxide (NOx) emissions, a harmful pollutant that causes respiratory illness and contributes to the formation of smog. Mercedes concealed the existence of these defeat devices from state and federal regulators and the public. At the same time, Mercedes marketed the vehicles to consumers as “environmentally friendly” and in compliance with applicable emissions regulations.
"Mercedes-Benz didn’t make a mistake, they made a calculated decision to lie to the public, deceive regulators, and harm public health,” said Attorney General Ellison. “Fortunately, they were caught. Today, I’m joining 50 attorneys general in holding them accountable for their brazen violations of the law. Minnesotans deeply value our clean air and environment — and we don’t appreciate corporations lying to us about it.”
“This is a victory for consumers and for clean air,” said Minnesota Pollution Control Agency Assistant Commissioner Frank Kohlasch. “We are grateful for the attorney general’s office and their partnership in holding polluters accountable.”
Today’s settlement requires Mercedes-Benz USA and Mercedes-Benz Group AG to pay $120 million to the states immediately upon the effective date of the settlement. An additional $29,673,750 will be suspended and potentially waived pending completion of a comprehensive consumer relief program.
The company must also comply with reporting requirements and reforms to their practices, including a prohibition on any further engagement in unfair or deceptive marketing or sale of diesel vehicles, or misrepresentations regarding emissions and compliance.
Today’s settlement follows similar settlements reached previously between the states and Volkswagen, Fiat Chrysler and German engineering company Robert Bosch GmbH over its development of the cheat software. Automaker Fiat Chrysler and its subsidiaries paid $72.5 million to the states in 2019. Bosch paid $98.7 million in 2019. Volkswagen reached a $570 million settlement with the states in 2016.
The attorneys general of Alabama, Connecticut, Delaware, Georgia, Maryland, New Jersey, New York, South Carolina, and Texas led today’s settlement, joined by Alaska, Arkansas, Colorado, the District of Columbia, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and Puerto Rico joined in today’s settlement.
