Canadian Superior Court has given green light to 2 lawsuits alleging a 2013 dividend payment was unwarranted
A court decision has given Sears Canada retirees hope they can recoup some of the millions of dollars missing from the now-defunct retailer's underfunded pension plan.
An Ontario Superior Court judge on Monday gave the green light to two lawsuits targeting U.S. billionaire businessman, Eddie Lampert and his hedge fund, ESL Investments, in connection with $509 million in dividends paid to Sears Canada shareholders in 2013.
The lawsuits — each initiated on behalf of Sears creditors including pensioners — centre on the same claim that the $509-million payout was detrimental to the company and orchestrated by Sears Canada's largest shareholders — Lampert and ESL — for their own benefit.
According to court documents, retirees claim Sears owes them nearly $730 million which includes $260 million for the pension fund shortfall and $421 million for lost retiree health benefits.