Kobach announces $150M settlement with Mercedes-Benz
Kansas Atty General Kris Kobach today joined 50 attorneys general announcing a $149 million settlement with Mercedes-Benz USA.
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TOPEKA - Attorney General Kris Kobach has joined a coalition of 50 attorneys general announcing a $149 million settlement with Mercedes-Benz USA for violating state laws that prohibit unfair or deceptive trade practices by marketing, selling and leasing vehicles equipped with illegal and undisclosed emissions defeat devices designed to circumvent emissions standards.
Kansas will receive $250,000.
Beginning in 2008 and continuing to 2016, the states allege 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. Approximately 539 of impacted vehicles were sold or registered in Kansas.
The states allege the defeat devices enabled vehicles to far exceed many legal limits of nitrogen oxides (NOx) emissions, a harmful pollutant that causes respiratory illness and contributes to the formation of smog.
Today’s settlement requires Mercedes-Benz USA 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 consumer relief program extends to the estimated 39,565 vehicles which 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 will pay consumers $2,000 per subject vehicle.
The company must also reform their practices, including a prohibition on any further engagement in unfair or deceptive marketing or sale of diesel vehicles, misrepresentations regarding emissions and compliance.
Assistant Attorney General Kaley Schrader handled the case for the Kansas Attorney General's Office.
