Oregon Joins $149M Mercedes-Benz Settlement Over Hidden Emissions Cheating Software
A 50-state coalition of attorneys general, including Oregon, settled a lawsuit yesterday against Mercedes-Benz USA for $149,673,750 over software installed in diesel vehicles to cheat emissions regulations.
Sources: Oregon DOJ settlement release dated Dec 22 2025 / Connecticut AG settlement summary dated Dec 22 2025
Dailytidings.com
Mercedes-Benz Emissions Defeating Device Lawsuit Settled
Mercedes-Benz USA violated state laws prohibiting unfair or deceptive trade practices by marketing, selling, and leasing vehicles equipped with illegal and undisclosed emissions-defeating devices designed to circumvent emissions standards from 2008 through 2016.
Over 211,000 diesel passenger cars and vans were equipped with software-defeating devices that optimized emission controls during emissions tests but reduced controls during regular operation. There were 4,094 affected vehicles in Oregon.
The devices enabled vehicles to exceed the legal limits on nitrogen oxides (NOx) emissions by far. They allowed Mercedes-Benz to achieve design and performance goals, such as increased fuel efficiency and reduced maintenance, that it couldn’t achieve while complying with emission standards.
Mercedes concealed the existence of these defeat devices from the public and from state and federal regulators, marketing the vehicles to consumers as “environmentally-friendly” and in compliance with applicable emissions regulations.
Attorney General Dan Rayfield said:
“Oregonians expect the cars they buy to be safe, legal, and honestly marketed.”
The settlement requires Mercedes-Benz USA to pay $120 million to the states and also includes more than $200 million in potential consumer relief. Oregon will receive $2,560,231.86 to resolve both UTPA and environmental claims.
| Settlement piece | What it covers | Key figures |
|---|---|---|
| Payment to states | Consumer protection and environmental claims by states | $120,000,000 due at effective date |
| Suspended amount | Can be reduced or waived if relief milestones are met | $29,673,750 suspended / Reuters: reduced by $750 per affected vehicle repaired, removed, or bought back |
| Unrepaired vehicles targeted | Owners must complete emissions modification to qualify for relief | Estimated 39,565 vehicles not repaired or removed by Aug 1 2023 |
| Consumer relief | Cash payment plus extended warranty for participating owners | $2,000 per subject vehicle |
| Emissions claim scale | Alleged excess pollution during normal driving | Reuters: up to 30 to 40 times the legal limit for NOx |
The companies must give participating consumers an extended warranty and will pay consumers $2,000 per subject vehicle. An additional $29,673,750 will be suspended and potentially waived pending completion of a comprehensive consumer relief program.
The consumer relief program extends to the estimated 39,565 vehicles not repaired or permanently removed from the road in the US by August 1, 2023.