Sears Sues Ex-CEO Lampert, Steven Mnuchin For Looting The Company
Courtesy of Zero Hedge
Sears, or rather the company that formerly owned Sears and Kmart, has sued its ex-CEO, chairman and iconic investor Eddie Lampert and his hedge fund alleging they illegally stripped the retailer of assets in the years leading up to its Chapter 11 bankruptcy. The lawsuit accuses Lampert that while he headed the recently bankrupt company, he directed the transfer of billions of dollars in assets "for grossly inadequate consideration or no consideration at all" for the benefit of himself, his hedge fund ESL Investments and others, Reuters reported. In other words, Lampert allegedly "asset stripped" Sears of most of its attractive assets and personally benefited from the transfers.
The lawsuit, filed by Sears Holdings, targets about two dozen defendants, including Treasury Secretary Steven Mnuchin, who was previously an investor and board member of ESL and has been friends with Lampert for decades.
Sears Holdings – a bankrupt zombie company in every sense of the word - of which Lampert was formerly CEO, chairman and the largest investor, alleged that Lampert's moves "were unmistakably intended to hinder, delay and defraud creditors and/or occurred when the Company was insolvent and had insufficient capital to continue its operations and to repay its billions of dollars in debt."