A federal judge has rejected an appeal by four former Chrysler executives, including Bob Lutz, over the automaker’s decision to reduce retired executives’ pension benefits as part of its 2009 restructuring plan, said Mayer Morganroth, the lawyer for the plaintiffs.
In February, U.S. Bankruptcy Judge Stuart M. Bernstein ruled that Chrysler is not required to assume the liabilities for former executives under the company’s supplemental executive retirement plan, The Detroit News reported.
The former executives argued that Chrysler could not assume a pension plan for active executives but unload its liabilities for retired executives.
Lutz, who left the automaker in 1998, originally filed his objection in June 2009. Morganroth, who filed an appeal on March 5, said the four executives collectively lost more than $10 million.
The other executives filing suits included Richard Schaum, Gary Henson and Donald Miltz, Morganroth said. Morganroth told The News the former executives could have other claims.