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Sears Estate to End Lampert-Related Suits in $175 Million Deal

Aug. 10, 2022, 8:54 PM

The bankrupt estate of Sears Holdings Corp. and company creditors agreed to resolve their sprawling litigation against former owner Eddie Lampert and other shareholders over pre-bankruptcy asset transfers for $175 million.

The deal ends three-year-old claims seeking $2 billion, based on past transactions spearheaded by Lampert and his hedge fund ESL Investments Inc. It also allows the implementation of Sears’ bankruptcy plan to proceed.

The influx of cash will allow Sears to pay professional and other administrative costs that must be paid off before the company’s Chapter 11 plan can become effective, according to court filings with the US Bankruptcy ...