City of Detroit sues over its own pension set up

City of Detroit sues over its own pension set up

In his testimony earlier this month in bankruptcy court, Detroit Emergency Manager Kevyn Orr said his team of attorneys had advised him there were potential legal issues with a pension deal that left the city holding $1.4 billion in debt obligations.

Today he MADE it a legal issue by authorizing the city’s 799-page filing in U.S. Bankruptcy Court against two service corporations and two trusts related to the pension deal. “This deal was bad for the City from its onset despite reassurances it would adequately resolve the City’s pension issues,” Orr said in the statement released this evening. “We have tried without success, to negotiate a resolution to this dispute and to allow the City and its taxpayers to move forward and unwind these illegal transactions.”

And here is the actual lawsuit, filed today:

COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF by WDETDetroit

 

Detroit always has a next chapter…

The Detroit Free Press had a story about the lawsuit and the history of the pension deal.