Maryland Secures $149.7 Million Settlement With Mercedes Benz, Daimler

Maryland officials on December 22, 2025 announced a $149,673,750 multistate settlement resolving allegations that Mercedes Benz USA and Daimler AG installed software that permitted certain diesel vehicles to exceed legal nitrogen oxide emission limits. The settlement concluded a multistate investigation co led by Maryland Attorney General Anthony G. Brown and the Maryland Department of the Environment.

Under the agreement, companies will make immediate payments to participating states and implement a consumer relief program that includes approved emissions software retrofits, extended warranties, and direct payments to eligible vehicle owners. Maryland’s share of the overall recovery was reported at roughly $6.7 million. State officials said that about 4,000 impacted vehicles remained in Maryland as of the investigation cutoff.

The settlement imposes reporting and compliance obligations on the company as it carries out repairs and consumer relief. That oversight is intended to ensure the promised retrofits and warranty extensions are performed for eligible vehicles and that direct payments reach qualifying owners. The multistate terms also create a framework for tracking progress and documenting repairs across jurisdictions.

For Baltimore City residents the settlement carries practical consequences. Owners of qualifying Mercedes Benz diesel vehicles should expect notices and options for approved software updates and potential warranty coverage. Eligible owners will be able to receive direct payments under the consumer relief program, and the state share of funds may be used for broader enforcement and environmental use as determined by state authorities.

The settlement resolves enforcement claims and places enforceable obligations on the manufacturers to remedy non compliant emissions controls and compensate affected consumers. As state agencies monitor implementation, Baltimore vehicle owners and environmental advocates will be watching for timely repairs and transparent reporting. The outcome underscores the role of state enforcement in holding manufacturers accountable for vehicle emissions and in directing resources toward remediation and consumer relief.