December 22, 2025 – A bipartisan coalition of State Attorneys General have reached a settlement with Mercedes-Benz and its parent company over emissions fraud.

Minnesota Attorney General Keith Ellison and Iowa Attorney General Brenna Bird joined that coalition. On Monday, December 22nd, they announced a $149.7 million settlement with the car maker for violating state laws against deceptive trade practices by selling vehicles with illegal and undisclosed emissions defeat devices.

The settlement also offers relief to the owners of the estimated 39,565 vehicles that had not been repaired or removed from the road by August, 2023. Mercedes will pay the cost of installing approved emission-modification software on those vehicles, and eligible drivers will receive $2,000 and an extended warranty.

The lawsuit alleges that from 2008 to 2016, Mercedes sold over 211,000 diesel passenger vehicles with illegal emissions devices to get around pollution standards. This allegedly led the vehicles to exceed legal limits of nitrogen oxide emissions.

About 1,642 of those vehicles are registered in Minnesota.

Minnesota Attorney General Keith Ellison released the following statement on the settlement:

“Mercedes-Benz didn’t make a mistake, they made a calculated decision to lie to the public, deceive regulators, and harm public health. 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.”

Iowa Attorney General Brenna Bird also released a statement on the settlement:

“Iowans deserve the truth when buying a vehicle. Software and cheat devices that can affect important issues like miles-per-gallon and maintenance should not be hidden so that Iowans can weigh the true value of the vehicle they want to purchase.  I am happy today’s settlement is returning money to Iowans’ pockets along with providing warranty extensions.”

Eligible drivers can take advantage of the settlement by installing approved emissions devices on their vehicles by August 31st, 2026. Then, they must submit a claim to Mercedes for the cash incentive payment by September 30th, 2026.

By KAALTV
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