New York Attorney General Letitia James, along with a coalition of attorneys general from 50 U.S. states, has reached a settlement of nearly $150 million with Mercedes-Benz USA over the use of illegal software in diesel vehicles that concealed their true pollutant emissions, misleading consumers about their environmental impact.
The investigation found that between 2008 and 2016, Mercedes installed so-called “defeat devices” that artificially reduced emissions only during official testing, while under normal driving conditions the vehicles emitted pollutants 30 to 40 times above legal limits, violating environmental standards and harming air quality.
As part of the agreement, Mercedes must pay $120 million upfront to the participating states and contribute to repair and remediation programs. In addition, eligible owners of affected vehicles will receive $2,000 if their cars undergo the required modifications to meet emissions regulations.
What is the goal of this settlement beyond the financial penalty?
In addition to punishing the automaker, the agreement aims to protect consumers, fund initiatives to reduce air pollution, and ensure Mercedes implements reforms to prevent future environmental misconduct.