Advising Directors And Officers Of Distressed Cos.
June 29, 2009, 12:00 AM EDT
Law360, New York (June 29, 2009, 12:00 AM EDT) -- As reported in the June 1, 2009, edition of Law360 (“Jury Finds Ex-Kmart Chief Liable In SEC Fraud Suit”), Charles Conaway, the former CEO of Kmart Corp., was recently found guilty of securities fraud following a jury trial in the United States District Court for the Eastern District of Michigan.
The jury found that in the months preceding Kmart’s bankruptcy Conaway misled investors about deteriorating liquidity and practices aimed at delaying payments to vendors.
At the heart of the case was the allegation that in late...