Sears sues former CEO Edward Lampert, claiming he stripped $2B in assets as it headed to bankruptcy
Source: Chicago Tribune
Sears Holdings Corp. has filed a lawsuit against its former chairman and CEO, Edward Lampert, and his hedge fund, claiming they wrongly siphoned $2 billion in assets from the company as it headed for bankruptcy.
“Had defendants not taken these illegal and improper actions, Sears would have had billions of dollars more to pay its third-party creditors today and would not have endured the amount of disruption, expense, and job losses resulting from its recent bankruptcy filing,” lawyers for company wrote in a court filing.
The lawsuit was filed by the team winding down what remains of Sears’ business after Lampert purchased the majority of its remaining assets in a bankruptcy auction earlier this year. The complaint, filed in the U.S. Bankruptcy Court in New York Wednesday, seeks to recover the property that was allegedly fraudulently transferred.
The lawsuit also names former Sears directors and ESL executives and directors including U.S. Treasury Secretary Steven Mnuchin, a former investor and executive at ESL, and Kunal Kamlani, president of ESL and a former Sears director, as defendants, as well as Sears shareholder Fairholme Capital Management and its founder Bruce Berkowitz.
Read more: https://www.chicagotribune.com/business/ct-biz-sears-sues-lampert-esl-bankruptcy-20190418-story.html
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