A group of former Chrysler and Daimler Chrysler workers have filed a lawsuit against Daimler AG and Cerberus Capital Management LLP, over lost pensions.
The lawsuit represents more than 450 formers employees and managers who lost pensions during the auto manufacturer’s reorganization and bankruptcy last year, according to a report in the Detroit News.
They claim that the pension accounts were not transferred to the new Chrysler Group LLC that was formed after bankruptcy with partner Fiat SpA.
Since the guaranteed pensions were set up by the company as a private benefit, they were not protected by the Pension Benefit Guaranty Corp., a U.S. federal body that protects the pensions of workers in single and multiemployer defined benefit plans.
The company is refusing to comment on the matter while it is before the courts.
