Case Page

 

Case Status:    DISMISSED    
On or around 06/03/2010 (Date of order of final judgment)

Filing Date: May 26, 2006

According to the complaint, this is a class action lawsuit asserting claims against defendants Sears Holdings Corporation ("Sears" or the "Company"), the factual and legal successor to Kmart Holding Corporation, and its CEO. Plaintiff bring this class action lawsuit on behalf of themselves and a proposed class of entities and persons (collectively "Plaintiff"), that purchased and then sold any shares of Kmart Holding Corporation ("Kmart") stock on or after May 6, 2003, when Kmart emerged from bankruptcy, through June 4, 2004 ("Store Sale Date"), when K-Mart announced it would sell up to 24 stores to Home Depot for up to $365 Million.

The complaint alleges that the Plaintiff, deceived about the true value of their Kmart shares by Kmart's affirmative misrepresentations and omissions concerning Kmart's business and prospects, and, in particular, the true value of Kmart's real estate holdings, purchased Kmart shares on or after Kmart emerged from bankruptcy and sold them before the Store Sale Date for substantially less than those shares were worth. Only after the Kmart's announcement on the Store Sale Date, that Kmart would realize up to $365 Million on the sale of a tiny fraction of its stores, (24 of Kmart's 1,513 stores remaining when Kmart exited bankruptcy), did plaintiff discover the true value of the shares Plaintiff had purchased during the Class Period, and then sold on the cheap during the Class Period, as a result of Kmart's misrepresentations and omissions. Only after the Store Sale Date did the magnitude of the fraud Kmart had perpetrated on the Plaintiff, and, consequently, the value of the opportunity of which the Plaintiff had been wrongfully deprived, become apparent.

The judge ordered all related cases to be consolidated, selected lead plaintiff and approved choice of lead counsel on February 8, 2007. The consolidated complaint was filed on May 11, 2007. Defendants entered a motion to dismiss on August 3, 2007.

On July 21, 2009, a memorandum and order was entered by the court granting the motion to dismiss.

On August 20, 2009, a notice of appeal was filed by the lead plaintiffs in the action.

On September 16, 2009, the U.S. Court of Appeals, Second Circuit assigned the Case Number 09-CV-3589 to this appellate proceeding.

On May 21, 2010, an Mandate was issued by the appellate court affirming the July 21, 2009, judgment from the district court.

COMPANY INFORMATION:

Sector: Services
Industry: Retail (Department & Discount)
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: SHLD
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. New York
DOCKET #: 06-CV-4053
JUDGE: Hon. John E. Sprizzo
DATE FILED: 05/26/2006
CLASS PERIOD START: 05/06/2003
CLASS PERIOD END: 06/04/2004
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Faruqi & Faruqi LLP (New York) (former)
    320 East 39th Street, Faruqi & Faruqi LLP (New York) (former), NY 10016
    212.983.9330 212.983.9331 · Nfaruqi@faruqilaw.com
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 06-CV-4053
JUDGE: Hon. John E. Sprizzo
DATE FILED: 05/11/2007
CLASS PERIOD START: 05/06/2003
CLASS PERIOD END: 09/29/2004
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Faruqi & Faruqi LLP (New York) (former)
    320 East 39th Street, Faruqi & Faruqi LLP (New York) (former), NY 10016
    212.983.9330 212.983.9331 · Nfaruqi@faruqilaw.com
  2. Gardy & Notis, LLP (NJ)
    440 Sylvan Avenue, Gardy & Notis, LLP (NJ), NJ 07632
    201-567-7377 201-567-7337 · info@gardylaw.com
  3. Grant & Eisenhofer (Wilmington)
    1201 N. Market Street, Suite 2100, Grant & Eisenhofer (Wilmington), DE 19801
    302.622.7000 302.622.7100 · lawyers@gelaw.com
  4. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    200 Broadhollow, Suite 406, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 · info@lerachlaw.com
No Document Title Filing Date
No Document Title Filing Date