Sears Sues Ex-CEO For Siphoning Billions As It Struggled

Law360 (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...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Beta
Ask a question!