Ex-Kmart to exec ordered to pay $10M
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.
To sign up for Mississippi Business Daily Updates, click here.
FOLLOW THE MBJ ON TWITTERMy Tweets
Top Posts & Pages
- UMMC reaching out after death of high school football player
- Former Godwin CEO Danny Mitchell dies at 66
- Northrop Grumman lands $354M Air Force contract for Global Hawks
- MDOT: Work on I-269 is on schedule, several phases at halfway point
- More school districts join MAEP lawsuit brought by Musgrove
- BLAKE WILSON: Danny Mitchell was a remarkable business leader, a better friend
- Delta Council says condition of Highway 6 'of crisis dimensions'
- Thousands of acres of Delta farmland to go on auction block
- Court tosses challenge to Miss. Silicon’s clean air permit