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.