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.
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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.