Sears Sues Ex-CEO For Siphoning Billions As It Struggled
By Rick Archer (April 18, 2019, 7:48 PM EDT) -- Sears Holding Corp. has filed suit in a New York bankruptcy court against ex-CEO Edward Lampert, his hedge fund and other investors, saying they made more than $1.8 billion spinning off the retail chain's assets while it spiraled into Chapter 11.
In a 110-page complaint filed Wednesday, Sears claimed Lampert, hedge fund ESL Investments Inc., Fairholme Capital Management LLC and Sears board member Thomas Tisch — the collective holders of more than three-fourths of the company's stock — profited by spinning off billions in company assets to shareholders for "grossly inadequate" consideration while it slid into bankruptcy.
"Had defendants not taken...
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