General Motors Retirees Sue Over Benefit Losses After Bankruptcy

Wednesday, 11 May 2011 10:07 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

May 11 (Bloomberg) -- Dozens of General Motors Co. executive retirees sued the company contending they suffered loss of benefits after the automaker’s bankruptcy.

The pensioners, including former GM Vice President John G. Middlebrook, are asking a judge to rule the company violated the federal Employee Retirement Income Security Act and order it to pay past-due benefits with interest, plus legal fees and expenses.

“In erroneously administering” the retirement plan, GM “contravenes the plain text” of the contract, lawyers for the executives said May 9 in a complaint filed in federal court in Detroit. Denial of benefits “constitutes an abuse of the discretion provided” in the plan, and is “arbitrary and capricious,” the lawyers said.

Detroit-based GM filed the third-largest bankruptcy in history in June 2009. The U.S. Treasury provided billions of dollars in loans that converted into equity.

“Sacrifices were made by every stakeholder, including former executives, to create a foundation upon which the new GM can thrive,” James Cain, a spokesman for General Motors, said in a telephone interview. He said the pension plan administrator “properly considered and denied” the claims.

The case is Tate v. General Motors LLC, 2:11-cv-12028, U.S. District Court, Eastern District of Michigan (Detroit).

--Editors: Stephen Farr, Charles Carter

To contact the reporter on this story: Phil Milford in Wilmington, Delaware, at pmilford@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.

© Copyright 2014 Bloomberg News. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Obama, Jeter Tee off on Exclusive Vegas Course

Sunday, 23 Nov 2014 07:47 AM

President Barack Obama is playing golf at an exclusive Las Vegas-area course with a retired shortstop, a Democratic Part . . .

Shifting Attitudes at Play in Cosby Allegations

Sunday, 23 Nov 2014 07:10 AM

Tamra Wade struggled mightily over whether to go to the police more than a decade ago, when, she says, a trusted profess . . .

Former DC Mayor Marion Barry Dies at 78

Sunday, 23 Nov 2014 06:09 AM

Divisive and flamboyant, maddening and beloved, Marion Barry outshone every politician in the 40-year history of Distric . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved