NEW YORK: Sears Holdings Corp sued longtime Chairman Eddie Lampert, his hedge fund ESL Investments, and former directors including Treasury Secretary Steven Mnuchin, accusing them of allowing the retailer to be looted of billions of dollars before its October 2018 bankruptcy.
"Had defendants not taken these improper and illegal actions, Sears would have had billions of dollars more to pay its third-party creditors today and would not have endured the amount of disruption, expense, and job losses resulting from its recent bankruptcy filing," the complaint said. Mnuchin, a college roommate of Lampert's at Yale University, had been a Sears director and ESL executive.Representatives for Lampert and ESL, Berkowitz and Fairholme, Seritage and the Treasury Department did not immediately respond to requests for comment. The post-bankruptcy Sears did not immediately respond to a similar request.
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