New York-headquartered private equity firm Cerberus Capital Management has accused automaker DaimlerChrysler of misleading it on the state of the auto-loan market prior to selling it an 80.1% stake for $7.4 billion in Chrysler Holding, AltAssets reports. The Cerberus accusation followed a Daimler statement that criticized it for failed negotiations regarding the acquisition of the remaining Chrysler stake.

Cerberus, which purchased the majority stake in Chrysler from DaimlerChrysler in 2007 and was to purchase the remaining 19.9%, is now asking Daimler for over $7 billion in compensation. The firm alleged Daimler intentionally and materially breached its contractual obligations.

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