Old Chrysler's Fraud Suit Against Daimler Nixed Again

Law360, New York (May 13, 2011, 2:20 PM EDT) -- A New York bankruptcy judge on Thursday again threw out a suit initiated by creditors of Chrysler LLC castoff Old Carco LLC claiming Daimler AG stripped assets from the automaker before handing it off to Cerberus Capital Management LP.

Unlike his first dismissal in July, this time Judge Arthur J. Gonzalez didn't give the plaintiff, referred to as the Liquidation Trust, leave to amend, giving Stuttgart, Germany-based Daimler a victory.

"Daimler is pleased that the court has dismissed the case at this stage. Daimler's position has...
To view the full article, register now.