Ernst Lieb loses lawsuit against Mercedes-Benz

Article by Christian Andrei, on November 19, 2012

The wrongful dismissal lawsuit filed by former Mercedes-Benz USA boss Ernst Lieb against Daimler, the brand's parent, was thrown out by a German court. Daimler fired the 57-year-old Lieb in October 2011 over allegations that he improperly used company money for home upgrades. Lieb was the Mercedes boss in the U.S. for five years.

He denied the claims and filed a suit against Daimler. A Stuttgart court junked Lieb's claim last Thursday. The court believes that the complaints against the plaintiff are so serious that being employed further at Daimler would not be acceptable. Daimler said that Lieb spent over $100,000 in corporate funds for the upgrade of his company-owned home located in Mahwah, N.J.

During a hearing last November, Daimler asserted that Lieb used company money to pay for items like a home theater system, a home gym, a washer and dryer, and a built-in barbecue system.

Back then, a Daimler spokesman said that Lieb was terminated for the statements he gave to the company during an audit that were deemed "incomplete, inaccurate and manipulative.” Lieb plans to file an appeal for the court decision, his attorney Stefan Naegele told the Stuttgarter Zeitung newspaper. Naegele added that his client is not after the money; rather, he hopes to repair the damage done to Lieb's image.

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