August 24, 2005

Kmart: Big buys, bigger lies

Randolph Paschke, chair of the accounting department in the School of Business Administration , commented in a story about a lawsuit filed Tuesday against former Kmart Corp. Chief Executive Officer Chuck Conaway and his chief financial officer John McDonald Jr. The lawsuit, filed in U.S. District Court in Detroit by the U.S. Securities and Exchange Commission, alleges that Conaway and McDonald engaged in numerous deceptions to conceal actions that led to the largest bankruptcy in U.S. retail history in January 2002. Paschke said former Kmart shareholders will most likely have to accept their payoff in the form of justice, not monetary compensation.

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