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


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