Mexican Media Brands
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.
#legal
Share
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."
RELATED CONTENT
-
Ex-FCA Official Pleads Guilty in Labor Training Fund Scandal
Alphons Iacobelli, a former head of labor relations for Fiat Chrysler Automobiles NV in the U.S., has pleaded guilty of stealing millions of dollars from an employee training fund.
-
Grand Jury Indicts Former FCA Executive In Union Payoff Scheme
A former labor relations executive at Fiat Chrysler Automobiles NV has been charged with making more than $2.2 million in illegal payments to himself and a United Auto Workers union official in Detroit.
-
Bosch Targeted in Criminal Probe of VW Diesel Cheating in U.S.
Federal prosecutors in the U.S. are trying to determine whether Robert Bosch GmbH conspired to help Volkswagen AB—and perhaps other carmakers—rig their diesel engines to evade emission standards, sources tell Bloomberg News.