Orr sues Detroit pensions for 'sham' deal
Updated On: Jan 31 2014 10:00:46 PM EST
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.