A lawsuit was filed by a current investor in shares of Sears Holdings Corp (NASDAQ:SHLD) over alleged wrongdoing by the CEO of Sears Holdings and long-term NASDAQ:SHLD stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 07/13/2015 -- An investor in shares of Sears Holdings Corp (NASDAQ:SHLD) filed a lawsuit against the CEO Edward Lampert and certain directors of Sears Holdings over alleged breaches of fiduciary duties in connection with the company's plan to sell of its prime real estate holdings to a trust at the expense of shareholders while benefiting Lampert. The plaintiff says that the proposed transaction is a financially and structurally unfair deal.
Investors who purchased shares of Sears Holdings Corp (NASDAQ:SHLD) and currently hold any of those NASDAQ:SHLD shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation or call +1(858) 779 - 1554.
The plaintiff alleges that Sears Holdings' CEO Edward Lampert has a 53 percent interest in Sears Holdings Corp and that Lampert's control of Sears Holdings Corp has been a complete disaster and has only led to an increased debt load. Edward Lampert has been the CEO of Sears Holdings Corp since 2013. More specifically, the plaintiff says that with defendant Edward Lampert as chairman, Sears Holdings Corp has gone through four CEOs, severely underinvested in its stores, experienced same-store sales declines for six straight years and, by 2012, saw annual losses near $1 billion in cash reserves dwindle to their lowest levels ever.
The plaintiff says that in 2014 Sears Holdings Corp spun off its most profitable division, Land's End Inc. in a $500 million deal in an effort to cover losses and Sears Holdings Corp also divested in Sears Canada, which netted $380 million, and announced its intent to close some 235 stores. Nevertheless, the plaintiff says that annual revenue of Sears Holdings Corp has fallen 20 percent since Edward Lamperts t took over, and Sears Holdings' massive asset sales have served only to fund annual losses that have increased by 80% to nearly $1.7 billion in 2014.
Furthermore, the plaintiff claims that Sears Holdings CEO Edward Lamperts is divesting Sears Holdings Corp through an allegedly unlawful transaction that siphons off its last remaining assets while keeping investors in the dark about the process. The plaintiff says the company's attempt to sell off its prime real estate holdings to a trust would strip Sears Holdings Corp of one of its last remaining valuable assets, leaving it as a debt-laden, money-losing renter in its own stores with a $150 million per year rental load for the 254 stores that would have to be paid to Seritage Growth Properties, another company Lampert controls. The plaintiff alleges that given the struggling retailers financial situation its non-controlling stockholders are therefore left with a stark choice of either to participate in the opaque rights offering and pay more to retain an interest in assets they already own, or to not participate and lose ownership of the company's last remaining large, monetized asset.
Those who purchased shares of Sears Holdings Corp (NASDAQ:SHLD), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego