I know many of you have been wondering how the Class Action case is progressing.
This is a slow process, and we have been patiently preparing and waiting for a court date to start arguing the case.
But there is now a significant development...as SEARS Canada continues to wind down it's operations by selling assets, we felt it necessary to make another stand.
On November 19, 2013, SEARS Canada declared an operating loss of $48.4 million for the 3rd quarter, but despite these losses the directors declared an extraordinary dividend of $5/share or a total of $509 million to shareholders.
We all know that the money was made available by selling SEARS' key real estate assets in and around Toronto (Eaton Center, Square One, Yorkdale,etc). Rather than re-investing that money to support operations, the directors simply gave it to shareholders (of which Eddie Lampert controlled more than 70%).
This is not the first round of dividends, nor will it be the last, as SEARS Canada is stripped of it's remaining assets to the detriment of creditors, pensioners, and it's employees.
This has become a common practice among hedge fund dominated corporations, who use the funds for other investments while leaving a skeleton company behind ready for bankruptcy protection.
Therefore, we have filed a secondary suit naming SEARS Canada, ESL Investments, and all the Directors of SEARS Canada claiming Oppression under CBCA statutes.
Please follow this link to see the actual claim....
https://drive.google.com/file/d/0B8YiZD65CzjFa3JOYU5tQ0VmN1E/view?usp=sharing
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