May 18, 2006

Sears Settles

Sears, Roebuck and Co., a wholly owned subsidiary of Sears Holdings Corporation (Nasdaq: SHLD), has announced the preliminary settlement of the securities class action pending against the company in the N.D. of Illinois. The case was originally filed in 2002 and alleges that Sears made misrepresentations concerning its credit card business. The settlement is for $215 million. The company is paying $85 million and expects the rest of the funds to come from insurance proceeds. For an analysis of the motion to dismiss decision in the case, see this post.

Posted by Lyle Roberts at May 18, 2006 11:38 PM | TrackBack
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