Former Kmart CEO to settle SEC case for $5.5 million |

Former Kmart CEO to settle SEC case for $5.5 million

The former chief executive of Kmart will drop his appeal of a $10 million-plus penalty and pay $5.5 million to settle years of litigation over the retailer’s fragile health before it filed for bankruptcy in 2002, court documents show.

A jury found Charles Conaway liable last year for misleading the company’s investors, and a federal judge subsequently ordered him to pay millions. But Conaway and federal regulators now have reached a deal in which he will drop his appeal and close the case with a $5.5 million payment.

On Wednesday an appeals court returned the case to federal court in Detroit to consider the settlement.

TribLIVE commenting policy

You are solely responsible for your comments and by using you agree to our Terms of Service.

We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.

While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.

We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers

We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.

We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.

We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.

We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.