Lawyers for the estate also allege that ESL stripped Sears of the real estate under 266 of the retailer’s most profitable stores, undervaluing the land by at least $649 million. “Moreover, the culpable insiders arranged for Sears to lease the properties back under blatantly unfair terms,” according to the complaint.
Sears has been insolvent since at least 2014, which means Lampert and the other defendants had a duty to protect creditors, not just themselves and other equity holders, the estate asserted.
This article was provided by Bloomberg News.