Nebraska is set to receive approximately $250,000 as part of a $120 million multistate settlement with Mercedes-Benz USA and Mercedes-Benz Group AG over the company’s BlueTEC diesel technology. Nebraska Attorney General Mike Hilgers said the automaker violated state laws that prohibit unfair and deceptive trade practices by marketing and selling diesel vehicles equipped with illegal and undisclosed emissions “defeat devices.”
A coalition of all 50 state attorneys general alleges Mercedes used the software to boost fuel efficiency and reduce maintenance costs—performance levels the vehicles otherwise could not meet while complying with emissions standards. According to the lawsuit, certain Mercedes models contained hidden software designed to bypass federal and state emissions rules, information that was not disclosed to consumers or regulators.
More than 211,000 vehicles nationwide, sold between 2008 and 2016, were affected. Under the settlement, Mercedes-Benz will pay $120 million to participating states, with an additional $29.6 million suspended and potentially waived if the company completes a consumer relief program. That program applies to an estimated 39,565 vehicles that had not been repaired or permanently removed from the road as of August 1, 2023.
Eligible Nebraska vehicle owners could receive $2,000 per vehicle after approved emissions modification software is installed at the company’s expense, along with an extended warranty. Nebraska’s share of the settlement will be placed into a state fund dedicated to future consumer protection litigation and education efforts.
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