Michigan Emergency Powers Challenge Dismissed by U.S. Judge

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A federal judge dismissed a lawsuit seeking to overturn a Michigan statute giving emergency powers to state-appointed financial managers, saying the law wasn’t ready for a legal challenge.

The Detroit workers’ pension boards, which sued in April, asked the federal court in Detroit to declare the law unconstitutional and block it from taking effect. The law, which lets managers terminate employee contracts and suspend collective bargaining, was signed by Michigan Governor Rick Snyder in March.