Jury Finds Ex-Kmart Chief Liable In SEC Fraud Suit

Law360, New York (June 1, 2009, 12:00 AM EDT) -- In a verdict returned Monday, a federal jury unanimously found former Kmart Corp. CEO Charles Conaway culpable for allegedly misleading investors about inventory levels and liquidity issues as the company drew closer to bankruptcy in 2001..

Conaway will pay a civil penalty and possibly face injunctions banning him from leading a public company in the future, following a three-week trial in which plaintiff the U.S. Securities and Exchange Commission argued that Conaway lied to investors in a 2001 conference call and regulatory filing about management’s reasons...
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