Iowa to receive $3.1M in Mercedes-Benz emissions fraud settlement

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December 23rd, 2025 by Ric Hanson

DES MOINES, Iowa (KCRG) – Iowa and several other states reached a nearly $150 million settlement with Mercedes-Benz and its parent company over emissions fraud allegations, the Iowa Attorney General’s Office announced. The lawsuit accused Mercedes of selling more than 211,000 diesel vehicles with illegal emissions devices from 2008 to 2016. The devices allowed vehicles to circumvent pollution standards and exceed legal limits of nitrogen oxide emissions.

“Iowans deserve the truth when buying a vehicle,” said Attorney General Bird. “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.”

As part of the settlement, Mercedes will pay to install approved emission software on more than 39,000 vehicles. The company must also provide consumer relief, including $2,000 payments and extended warranties for affected owners.  Iowa will receive $3,130,271 from the settlement.

Iowa joined the settlement that was co-led by Connecticut, Delaware, and Maryland along with Alabama, Georgia, New Jersey, New York, South Carolina, and Texas.

More than 40 additional states and territories also joined, including Alaska, Arkansas, Colorado, the District of Columbia, Florida, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, 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.