Ex-Kmart to exec ordered to pay $10M
by Associated Press
Published: February 25,2010
DETROIT — The former head of Kmart Corp. has been ordered to pay more than $10 million for misleading investors about the retailer’s health before it sought bankruptcy court protection in 2002.
U.S. Magistrate Judge Steven Pepe (Payp) released a 70-page decision Thursday, nearly nine months after Charles Conaway was found liable in a civil trial in Michigan.
The case was a fresh look at Conaway’s brief tenure at Kmart and the desperate scramble to keep the company afloat before one of the largest bankruptcy reorganizations in retail history.
The Securities and Exchange Commission had accused Conaway of failing to disclose that Kmart was delaying payments to suppliers to save cash.
Conaway will appeal the jury’s verdict and the financial penalties.
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