Thread regarding Sears layoffs

Lol what are you going to get from an employee if you sue them? For the most part they don't have money to pay anything. Finding a jury who will award you damages from an employee the moment Fast Eddie is name dropped would be as tall a task as Kmart Cheerleader's hopes of SS Kresge returning.

Eddie meanwhile has roughly half the stock he owns in personal holdings outside of ESL/RBS partners. Suing him and unraveling the millions of LLCs he's created will be expensive, time consuming and likely lead nowhere.

No one will recover anything. The money is dead and gone.

It seems they mislead so may employees and vendors. They conned vendors into dropping bankruptcy claims in exchange for long-term contracts with Transformco, only to then leave said vendors in the lurch with months of unpaid invoices. Current employees lied for the company. Employees were laid off without severance; or under the guise of the Covid crisis. Pensions are gone. Benefits are gone. And low and behold Transformco now has little to no assets to go after. What the employees who lied fore the company don't realize is that they are personally liable for misrepresentation and are not protected by the corporate veil either. It's going to get messy - you know this is not the first law suit in the works.

This lawsuit goes back further than this, its mot new, its been kicking around since the Sears Holdings sale.

See the quote "More than two dozen Bangladeshi suppliers are in similar “deep trouble” after Sears Holdings allegedly canceled or withheld orders. “[Sears Holdings] is not paying us,” Chowdhury said."

I looked into this and I believe what happened was the goods were ordered under Sears Holdings. Eddie then bought the company. He then attempted to stiff the suppliers with stuff in the pipeline. These suppliers were some that thought they had worked out an agreement and granted the new company credit and expected them to pick up where things left off, instead Transform decided they didn't want that merchandise.

Technically Sears Holdings owes the money, they don't have any. Maybe not so much now but at the time Transform had the money to pay for it back then, they just didn't want to. I think that was more a gesture to pressure other vendors and such in court. Eddie knows there is no legal obligation to take the merchandise or pay for it.

Is it scummy? Yes. Is it legal? Most likely.

There's a concept called piercing the corporate veil, where a subsidiary company like Transform, if left underfunded, gets pierced to the parent company which is held liable, an this holds true no matter how many subsidiaries you create. Judges have a lot of leeway here to uphold justice in equity to prevent unjust enrichment and prevent outcomes that shock the conscience. Now if the parent company is majority controlled by a guy, and let's say he's so dumb he has his name on the company and exercises a lot of personal control, he himself might be held personally liable for a whole lot of shenanigans.

Of course courts are responsible for directing people to enforce judgements. The hint is in the judge part of "judgement". Who do you think orders sheriffs to evict people or to seize property?

By the time this goes through the courts, the legal fees will more than outweigh the total settlement. A judge can order Transformco to pay, but the courts aren’t responsible for enforcing the judgement, it’s up to the shippers. The shippers are spending dollars to chase dimes.

The fail is so deep that it is now responsible for mass starvation. Winning!