It’s the season for restitution, I guess. (Better than the Couch of Restitution!)
DETROIT (AP) — The former head of Kmart Corp. has been ordered to pay more than $10 million for misleading investors about the retailer’s health before bankruptcy 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 bankruptcies 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.