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Ex-Chrysler Employees Can Pursue Age-Bias Claim
A U.S. court has reinstated a lawsuit by more than 450 former executives of Chrysler Group LLC who lost their supplemental retirement benefits when the company went bankrupt in 2009.
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A U.S. court has reinstated a lawsuit by more than 450 former executives of Chrysler Group LLC who lost their supplemental retirement benefits when the company went bankrupt in 2009.
The Court of Appeals in Cincinnati, Ohio, says a lower court had wrongly dismissed the group's age-bias claims against former Chrysler owner Daimler AG. The appeals panel upheld the rejection of other claims of breach of fiduciary duty.
The plaintiffs say Daimler used some of the retirement plan's trust assets in 2005-2006 to buy annuities for selected Chrysler employees and retirees, thus locking in their benefits. The lawsuit alleges that the employees who were protected were on average younger than those who didn't get annuities.
When Chrysler filed for Chapter 11, the remaining assets in the trust became part of the bankruptcy estate. The plaintiffs say they lost all or most of their supplemental retirement benefits.
Daimler says it will continue to defend the case "vigorously."
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