Mercedes' former U.S. chief was fired amid allegations of fraud.

A German court has thrown out former Mercedes-Benz USA CEO Ernst Lieb's wrongful dismissal suit against Daimler.

After five years at the helm of Mercedes' U.S. operations, Lieb was relieved of his duties in October 2011 following allegations that he improperly spent $100,000 of Daimler's money to upgrade his company-owned home in Mahwah, New Jersey. Daimler claims that the funds were used to buy a home theater, home gym, washer and dryer and a built-in barbeque, among other items.

For his part, Lieb maintained that his firing was unjustified because the purchases were legitimate. Water damage necessitated the replacement of the home gym, while the washer and dryer were "in a state of disrepair," Lieb said

The German court on Thursday dismissed Lieb's suit, stating: "In the view of the court, the allegations against the plaintiff are so serious that any further employment [at Daimler] would be unacceptable."

Lieb's lawyer said that the ex-exec plans to appeal the ruling in an attempt to set the record straight and repair his tarnished repuration, according to an Automotive News report.

Photo by Mark Elias.