The Daily Parker

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How many lawsuits is Eddie Lampert party to?

Two made the news this week. First, Lampert has sued Sears (which he owns) for not conveying property that his investment firm bought from the doomed retailer:

Lampert's Transform is accusing the Sears estate, a bankrupt shell entity that is winding down under court supervision, of multiple wrongs including breaking the agreement by holding on to the chain's headquarters in Illinois. The estate is also intentionally delaying payments to vendors and trying to shift $166 million in accounts payable costs, according to the Transform complaint filed on Saturday.

The allegations mirror those made in court filings from Transform earlier this year. The Sears estate also sued Lampert, U.S. Treasury Secretary Steven Mnuchin and others last month, claiming they wrongly transferred $2 billion of company assets beyond the reach of creditors in the years leading up to the retailer’s bankruptcy.

Meanwhile, in another case, Lampert filed court documents in which he threatens not to pay $43m in severance payments he promised to make:

Lampert also denied that he is responsible for making some payments to creditors he says Sears Holdings is trying to force him to pay, according to the filing. Sears Holdings is the bankrupt remnants of the old Sears. It exists only to settle claims against it involving its few remaining assets.

Lampert had previously agreed to pay the severance to workers who lost their jobs before and during Sears' bankruptcy. Creditors objected to Sears paying severance to people laid off before the bankruptcy, so those workers never received an exit package.

Lampert's attorneys told the bankruptcy court that Lampert and his hedge fund ESL were the best owners to help workers who lost their jobs in various rounds of store closings.

But in the latest court documents, ESL said it wouldn't make the severance payments because Sears didn't give the hedge fund all of the assets it spelled out in ESL and Lampert's agreement to buy Sears. That included the amount of store inventory originally promised by Sears, as well as the company's headquarters in suburban Chicago.

Wow, he really wants to win Worst CEO of the Century, doesn't he? And remember, Lampert never cared about Sears as a going entity; he has always and only wanted the land Sears owns. What a schmuck.

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