August 24, 2005

Ex-Kmart CEO charged with fraud

Peter Henning, a former SEC and Justice Department lawyer and Wayne State University law professor, says he was surprised at how narrow the case is involving former Kmart executives currently being sued for their actions in the retail chain's bankruptcy. "It reminds me of the old song, 'Is that all there is?' Everyone had known for a long time that Kmart was a high-risk investment," Henning says. He also predicted lawyers will question whether the statements surrounding the vendors were "material" to a company with annual revenue of $37 billion.

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