Binghamton Man Sues Owner of Sears

A lawsuit has been filed by a Binghamton man against Sears Holdings Corporation, the company that owns Sears and Kmart stores.

John Solak said the class-action suit was filed May 29 in the state of Delaware.

The legal action's goal is to block the company's planned sale of 254 Sears and Kmart stores to a real estate investment trust controlled by Sears Holdings chairman and CEO Edward Lampert.

Solak said he brought the lawsuit on behalf of all Sears Holdings shareholders.

Speaking on WNBF Radio's Binghamton Now program, Solak said Lampert would stand to benefit from the store transaction at the expense of company shareholders.

Under the proposal, Sears Holdings would lease the store properties from the newly-created entity and continue operating the businesses at the same locations.

The real estate owned by Sears Holdings is viewed as being its most valuable asset as its stores continue to struggle.

Solak said he believes shareholders have "a decent shot" at prevailing in what he described as a "David and Goliath" battle.

Solak noted the lawsuit doesn't seek money. He said it merely seeks to stop the proposed transaction and "keep those assets where they belong" so they could be used for pension costs or other company expenses.

Solak said he hopes it will prove to be a case where "little bitty investors - the smallest fries around - stand up to the billionaire management and say, enough already."