Qui tam bid fails to hook automaker

Trial Notebook

By Steven P. Garmisa

Hoey & Farina

Posted May 26, 2015 2:52 PM

Relying on the rule that qui tam claims are not dischargeable in bankruptcy, William Ceas Jr. sued Chrysler Group LLC — the company that purchased the assets of DaimlerChrysler Corp. for $2 billion in 2009 as part of prepackaged proceedings under Chapter 11 of the Bankruptcy Code — alleging that the federal government was defrauded on warranties for vehicles it purchased from “Old Chrysler” in 2004 and 2005.Ceas contends Old Chrysler “fraudulently induced the government into purchasing …

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