Cases

Sears Holdings Corporation Securities Fraud Class Action

Gardy & Notis, LLP has been appointed by the Court as lead counsel for investors suing Sears Holdings Corporation (NASDAQ: SHLD) and its Chairman, Edward Lampert. Sears is the sucessor to Kmart Corporation (formerly, NASDAQ: KMRT), and the case is brought on behalf of all investors who sold Kmart securities between May 6, 2003 (when Kmart emerged from bankruptcy) and June 4, 2004 (when Kmart began disclosing the sale of certain stores at values far more than listed in the banruptcy disclosures).

Lampert arranged for his hedge fund, ESL investments, Inc., to complete a highly discounted buyout of much of Kmart's bank debt and bond debt during K-mart's bankruptcy proceedings, with ESL emerging from the bankruptcy proceedings as Kmart's majority shareholder and Lampert as Chairman. The complaint charges that Kmart's real estate assets were worth far more than Kmart and Lampert disclosed in the plan of reorganization and disclosure statement filed in the bankruptcy court filings. Indeed, while the plan of reorganization and disclosure statement listed an average per store real estate interest of just $800,000, Kmart and Lampert disclosed just 14 months later a large sale of Kmart stores representing an average per store estate interest of over $12.4 million, despite a downturn in the real estate market.

The case is In re Sears Holdings Corporation Securities Litigation, in the United States District Court for the Southern District of New York.

For more information regarding the lawsuit or to obtain a copy of the complaint or any Court filings, please contact us.