November 29, 2005 - As many as 150,000 employees and retirees of the former Kmart Corp. would share $11.75 million in a proposed settlement of a lawsuit against ex-company officials over the investment of pension funds in Kmart’s now worthless stock. In August, the U.S. Securities and Exchange Commission filed civil charges of securities fraud and aiding and abetting securities fraud against Conaway and former Kmart Chief Financial Officer John T. McDonald.
The SEC said the executives made “materially false and misleading” disclosures to shareholders before the retailer’s bankruptcy filing.
“Sign a credit card deal with HSBC’s Household International and the SEC looks to see what your company is up to. The SEC - HSBC - Household International loop is a trend” said consumer advocates. “Just look at Saks, H&R Block, Best Buy, K-Mart, Sears Holdings” the group said.
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