(Reuters) – Sears Holdings Corps long ago sued President Eddie Lampert, his hedge fund ESL Investments Inc., and former directors, including Secretary of State Steven Mnuchin, who accused them of allowing the dealer to be billions of dollars before October 2018 bankrupt.
The trial, published on Thursday, was filed by the restructuring group settlement of what remains of the Sears pre-heat competition of $ 5.2 billion in February of most of its assets.
Sears accused Lampert of Order of the creation of fake financial plans showing that the reseller would turn around, even if large losses arose, allowing for the transfer of five major assets, including Land's End Inc. and Sears Hometown and Outlet Stores Inc. to his advantage.
Had the defendants not taken these erroneous and unlawful acts, Sears would have had billions of dollars more to pay his third party creditors today and would not have endured amou
Other respondents include Bruce Berkowitz and his Fairholme Capital Management LLC, who have been one major shareholder in Sears, and Seritage Growth Properties, which housed 266 of Sears' more profitable stores after being spun.
Mnuchin, a college companion of Lampert at Yale University, had been a Sears manager and ESL executive.
Representatives of Lampert and ESL, Berkowitz and Fairholme, Seritage and the Ministry of Finance did not respond promptly to the request for comment. The post-bankruptcy Sears did not immediately respond to a similar request.
The reorganized company was expected to have approximately 425 Sears and Kmart stores, down from about 3,500 when these companies merged in 2005.
The case is ] Sears Holdings Corp et al. v., Lampert et al. US Bankruptcy Court, Southern District of New York. The main bankruptcy case is I re Sears Holdings Corp. in the same court.