Ex-Chrysler Workers Sue Cerberus Over Trust Benefits

Law360, New York (October 25, 2010, 2:10 PM EDT) -- More than 100 former Chrysler Corp. employees have hit Cerberus Capital Management LP with a putative class action accusing the private equity giant of leaving a $200 million benefits trust in tatters, with only $3 million on hand by the time the automaker filed for bankruptcy in April 2009.

Had Cerberus prevented the fund from being raided, plaintiff John Loffredo and others would have continued to receive retirement benefits after the completion of the Chrysler bankruptcy, according to a complaint removed Thursday to the U.S. District...
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