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Last updated 3:31AM ET
February 25, 2021
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Labor Department sues Fifth Third in Detroit real estate case
(2008-01-10)
(wgvu) - WASHINGTON (AP) - Federal officials are accusing Fifth Third
Bancorp of causing a union pension fund to lose more than 20
million dollars in a Detroit real estate investment.
The Labor Department has filed a lawsuit in U.S. District Court
in Detroit against Cincinnati-based Fifth Third.
Authorities say the bank mismanaged the development and sale of
a property owned by the pension fund for Operating Engineers Local
324.
The lawsuit says the Troy, Mich.-based pension fund bought the
property for 5 million dollars in 1999.
More than 23 million dollars was invested to renovate the
property.
The Labor Department says Fifth Third sold the property in 2004
to the Cavaliere Group for only $4.5 million.
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