Orr sues Detroit pensions for 'sham' deal

Published On: Jan 31 2014 09:57:37 PM EST
Updated On: Jan 31 2014 10:00:46 PM EST
DETROIT -

Detroit Emergency Manager Kevyn Orr is suing the city's pension system for what he is calling a shame of a deal.

The Kwame Kilpatrick administration borrowed $1.4 billion in 2005 to try to shore up Detroit's underfunded pensions. The deal led to a financial disaster, one which Orr alleges went around the rules.

The lawsuit filed Friday night is the first legal step. Orr may file suit against the banks involved unless a settlement can be reached.

Negotiations are ongoing.

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