Sears filed suit on Thursday with former CEO Eddie Lampert and a number of senior senior executives, including former Yale roommate Treasury Secretary Steven Mnuchin, who reportedly stole billions of dollars.
These claims laid the foundation for the unsecured creditors to assert their claims against Lampert and others on behalf of Sears. Lampert had applied for exemption from possible ligation as part of his deal to replace Sears, but was denied protection.
"Overall, Lampert caused more than $ 2 billion in assets for itself and the other shareholders of Sears and out of the reach of Sears' creditors," claims the lawsuit on Thursday.
Under Lampert's allegations, the company said it rejects a $ 1.6 billion bid for Lands & # 39; End of Leonard Green & Partners and Tommy Hilfiger from Investment Group in favor of a spin that would leave his share of the mark intact.
She cites an e-mail from the company's then-chief financial officer, Robert Schriesheim, who told another Sears employee that "[Lampert] is trying to optimize cash for [Sears] while maximizing its (ESL) share … because he knows [Lands’ End] is worth a lot outside of [Sears]. "
Lands & # 39; s endorsement claims were distributed to Lampert, ESL, and other Sears & # 39; Shareholders without compensation, after a dividend of 500 million US dollars. On the first trading day of the stock, the value of the stock exceeded $ 1 billion, with Lampert's share amounting to at least $ 490 million. The stock currently has a market value of $ 591.3 million.
It further alleges that Serra's agreement with Sears to own 266 of Sears Best Retail Stores has not been negotiated and that the properties have underestimated at least $ 649 million. "The assessments were fundamentally flawed and, inter alia, future leasing rates were deliberately used by the market as the sole basis for their valuations," the lawsuit states.
Sears created committees to review each of his transactions, but the lawsuit these committees relied on "solvency opinions and assessments based on false predictions" while Sears was in his financial "death spiral".
The lawsuit also alleges, "In an effort to create a false record on the personal leadership of Lampert, Sears employees repeatedly drew up financial plans that reflected imaginative, malicious predictions, according to which the company had an immediate and dramatic turn of the deep and Emerging businesses would experience sudden profitability. "
The lawsuit cites numerous defendants alongside Lampert and Mnuchin, including two high-profile directors: Bruce Berkowitz, a hedge fund manager who was a big investor in Sears, and Kunal Kamlani, President of ESL.
"ESL Investments, Inc. vigorously denies the claims of the debtor lawsuit against ESL, Mr. Lampert and Mr. Kamlani, repeating unfounded allegations and imaginative claims, as we have already said, the allegations of the debtors are misleading or simply wrong," said a spokesman for the ESL.
Mnuchin, who resigned from the Sears Board when he was appointed head of the Treasury, was not immediately available.
"Fairholme is reviewing the submissions," said a spokesman for the Berkowitz Hedge Fund, Fairholme Capital Management.
Berkowitz had his own momentum last year at Lampert's Sears management, as a lawyer for Fairholme told the bankruptcy court that Sears was "not so much a melting ice cube but a puddle". He described the retailer's junk as a "perennial liquidation" that happened "without judicial oversight".