×
150
Fashion Jobs
PUMA
Manager- Returns And Spf Operations
Permanent · Bengaluru
TECHNOVALUE SOLUTIONS PVT. LTD
Senior Sales Engineer / Area Sales Manager
Permanent · Baddi
TOUCH MOBILES
Wanted Area Sales Manager - Touch Mobiles
Permanent · Khammam
OAKBRIDGE PUBLISHING PVT LTD
Area Sales Manager
Permanent · Pune
AVANTOR
sr. Account Manager- Lab Products
Permanent · Kolkata
ANTLIA FINTECH PRIVATE LIMITED
Area Sales Manager
Permanent · Prayagraj
EXTRAMARKS EDUCATION
Area Sales Manager- B2B
Permanent · Hyderabad
ERA UNIVERSITY (ERA EDUCATIONAL TRUST)
Production Manager- Lucknow
Permanent · Lucknow
RENOVATE BIOLOGICALS PVT LTD
Area Sales Manager
Permanent · Hyderabad
PEOPLE ALLIANCE WORKFORCE PRIVATE LIMITED
sr. Area Sales Manager / Territory Sales Manager - Fmcg Personal Care
Permanent · Purulia
MOTILAL OSWAL FINANCIAL SERVICES
Opening For Territory Manager B2B Sales - Mumbai
Permanent · Navi Mumbai
NAGA LIMITED
Manager - Production
Permanent · Dindigul
JIO
jc Home Lead - Coimbatore & Tiruppur - Sales Manager
Permanent · Tiruppur
AVANTOR
Area Sales Manager || Patna/Ranchi
Permanent · Ranchi
BDO INDIA LLP
Cnc Manager Production Manager Minimum 14 Yrs to 18 Yrs
Permanent · Chennai
KENT RO SYSTEMS
Corporate Sales Manager
Permanent · Chennai
AS
Opening For Production Manager in Leading Sweets Mfg Company
Permanent · Thane
CENTURY PLYBOARDS (I) LIMITED
Area Sales Manager - Ahmedabad
Permanent · Ahmedabad
SRL DIAGNOSTICS
Territory Development Manager
Permanent · Prayagraj
KISHOR EXPORTS
Qam - Quality Assurance Manager For Garment Exports Company
Permanent · Ranchi
JAYPEE BROTHERS MEDICAL PUBLISHERS PVT LTD.
Area Sales Manager
Permanent · Prayagraj
HDB FINANCIAL SERVICES
Sales Manager - Alternate Channel
Permanent · Salem
By
Reuters
Published
Feb 10, 2017
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Investors reach $40 million settlement over Sears real estate deal

By
Reuters
Published
Feb 10, 2017

Sears Holding Corp's chairman and chief executive, Eddie Lampert, and the company's board agreed to a $40 million settlement of a shareholder lawsuit that alleged Lampert benefited from a deal to spin off 235 of the struggling chain's best stores.




The lawsuit was brought on behalf of Sears and against Lampert, other Sears directors and Seritage Growth Properties, the real estate investment trust established to acquire the stores.

Sears spokesman Chris Brathwaite said the lawsuit was settled to avoid protracted litigation. The settlement must be approved by Delaware's Court of Chancery. The defendants said in court papers the agreement was not admission that the allegations were valid.

The lawsuit is a derivative action and the settlement payment will be made to Sears. The company's shareholders will only benefit indirectly.

The lawsuit by individual investors stems from a deal in which Sears spun off Seritage in 2015 to its shareholders by way of a rights offering. Seritage then paid $2.6 billion for Sears and Kmart stores, most of which were leased back to Sears Holding.

The deal provided much-needed financial flexibility for Sears, which has been struggling for years.

Lampert controlled Sears and owns about 9.6 percent of Seritage, although investors alleged he controlled the real estate company.

The lawsuit alleged the deal was structured to put the best real estate into Lampert's hands to the detriment of Sears.

The rest of the Sears' board, which includes Steven Mnuchin, who is currently the nominee to be U.S. Treasury secretary, were alleged to have failed to properly oversee the deal and protect the interests of Sears.

The settlement payment was being funded "by defendants and/or their insurers," according to papers filed with Delaware's Court of Chancery.

Derivative lawsuit settlements often lead to changes in corporate governance but rarely produce cash payments. News Corp received $139 million after investors sued its board for failing to investigate a phone hacking scandal at the company's British newspapers. That settlement was paid by insurance coverage.

Fairholme Capital Management LLC and Lampert's ESL Investments Inc, which have significant stakes in Sears and Seritage, were also named as defendants.

 

© Thomson Reuters 2022 All rights reserved.