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Lee Iacocca, 450 Other Former Execs Sue Chrysler

Seeking millions in pensions lost during maker’s bankruptcy.

by on Sep.13, 2010

Lee Iacocca kept Chrysler out of bankruptcy in 1979, but his supplemental pension was wiped out by the maker's 2009 trip through Chapter 11.

More than 450 Chrysler executives, among them former chairman Lee Iacocca, filed a class action lawsuit in Wayne County Circuit Court, naming Daimler AG and Cerberus as defendants, claiming they lost millions of dollars in supplemental pensions during the automaker’s bankruptcy.

Sheldon Miller, one of the lawyers representing the executives, said the former Chrysler employees, many of them well-known figures, lost their supplemental pensions during Chrysler’s 20009 bankruptcy.

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A Daimler spokesman said he could not comment on the lawsuit because he had not seen any court documents.

Miller said the supplemental pensions were not transferred to the new Chrysler during the bankruptcy and, “as a result, each of the plaintiffs lost large percentages of their earned retirement pensions.” Overall, roughly $100 million was lost by the executives.