Sears Tentatively Settles Bankruptcy Class Action
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BOSTON — Sears, Roebuck & Co. said it reached preliminary settlements with 39 states and customers who filed a nationwide class-action lawsuit following the retailer’s admission that it wronged customers in bankruptcy proceedings.
Sears also said the Federal Trade Commission informed the retailer that it broke the law with some of the practices it used to collect debts from some bankrupt credit-card customers, according to a document filed with the Securities and Exchange Commission.
The suits and other legal matters stem from the retailer’s April admission that it didn’t file the proper papers in some cases after getting bankrupt credit-card customers to continue paying their bills. The Hoffman Estates, Ill.-based retailer said it would pay back customers as much as $400 million plus interest, which it said would reduce full-year earnings.
Sears’ shares rose 50 cents to close at $49.25 on the New York Stock Exchange on trading of 4.2 million shares, about triple its three-month daily average of 1.5 million.
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