NEW YORK -- A shareholder lawsuit seeking class-action status was filed last week in a Detroit federal district court against Charles Conaway, Kmart's chief executive officer, for alleged securities law violations.
NEW YORK -- A shareholder lawsuit seeking class-action status was filed last week in a Detroit federal district court against Charles Conaway, Kmart's chief executive officer, for alleged securities law violations.The lawsuit, which seeks unspecified compensatory damages, was filed by D.E. & J. Ltd. Partnership on behalf of all shareholders who bought shares of Kmart stock between May 17, 2001 and Jan. 22, 2002, the same day the discounter filed for Chapter 11 bankruptcy court protection. Court papers said that Kmart is not a named defendant because it is in bankruptcy proceedings, The lawsuit alleged that Conaway participated in a "fraudulent scheme" by disseminating "materially false and misleading statements and/or concealing material adverse facts," and said that the alleged concealment resulted in shareholders buying company stock at "artificially inflated prices."Milberg Weiss Bershad Hynes & Lerach is lead counsel for the shareholder, with the law firms of Cauley Geller Bowman & Coates and Schiffrin & Barroway as co-counsels.A Kmart spokesman said, "Our general policy is that we don't comment on matters in litigation."In a separate development, Kmart's new ad campaign, directed by Spike Lee, raised eyebrows even before its Sunday debut at the closing ceremonies for the Winter Olympics. While the campaign's cost -- a reported $40 million -- appears to be an enormous sum for a bankrupt company, financial and brand marketing advisers agreed that Kmart needs to drive traffic into the stores. One credit source said that the amount was approved before the company filed for Chapter 11. The new campaign is institutional in nature, focusing on more traditional values, such as putting family first.Paul Griswold, ceo of Paxar Corp., a provider of merchandising and inventory management systems to retailers, said, "Many suppliers have lost confidence in Kmart. The focus of the campaign suggests to me that they are no longer targeting Wal-Mart, but the specialty and department store customers. If they can build on that, cull down their number of suppliers and reestablish strong relationships with key vendors going forward, the supply chain problems should fall into place."
“I grew up in New York but I hadn’t really experienced the city in any type of touristy way…This was probably the first museum I really explored and took the time to see,” said @haileybaldwin of the @whitneymuseum. On Tuesday night, Baldwin was joined by Jemima Kirke and more at the annual Whitney Museum Gala and Studio Party, which honored Lorna Simpson, Joanne Leonhardt Cassullo and Beth Rudin DeWoody. See more photos on WWD.com. #wwdeye (📷: @lexieblacklock)
Displayed starting this week at the @fashiontextilemuseum: An exhibition on designer @orlakiely titled “Orla Kiely: A Life in Pattern,” which spans two decades and contains more than 150 pieces. “I want people to come away loving pattern and print. It’s something that makes you feel so good,” said the designer during a preview of the exhibit. Also on show are mood boards, samples, sketches and more. Head to WWD.com to see more photos. #wwdfashion
Exclusive: @dsquared2 signs fragrance licensing agreement with Euroitalia, with the first effort of the new partnership being unveiled in September. The brand will launch two scents – one for men and one for women – in Italy. Read our interview with designer Dean and Dan Caten on WWD.com. #wwdbeauty #wwdnews (📷: @zefashioninsider)
@louisvuitton has officially renewed Nicolas Ghesquière’s contract as artistic director of women's collections. "I am very pleased to open the next chapter of the story I started with Louis Vuitton almost 5 years ago," said Ghesquière, who first signed on to design the French luxury brand's women's line in 2013. Get all the details on WWD.com. #wwdnews #wwdfashion (📷: @giovanni_giannoni_photo)
“I learned then and there that I had to figure out a way in life to maintain and preserve my sense of pride when I felt good about what I did or what I represented or created,” said @saintrecords on how being bullied for wearing capri pants inspired her to be the artist she is today. Knowles was at the 70th Parsons Benefit last night where she outbid the room for a Dapper Dan customized @gucci experience. #wwdeye (📷: @lexieblacklock)
“There’s this amazing braintrust of people who know the whole universe so well. So we talked to them and they gave us more input,” said actor Alden Ehrenreich on playing the young Han Solo in “Solo: A Star Wars Story.” The cast was at NYC’s SVA Theatre last night for an advanced screening of the film, which hits theaters this week. #wwdeye #starwars #hansolo (📷: @aurorarosedecrosta)
@asaprocky spent nearly two hours in a Plexiglas box Sunday night at @sothebys putting himself through a series of “tests” to demonstrate the process of completing his new album called “Testing.” Get all the details and see all the pictures on WWD.com. #wwdeye
“I’ve struggled my whole life to find a bathing suit that fits me that doesn’t look like a maternity bra. I’m proud of the line because it’s an accurate representation of me rather than me putting on someone else’s clothes,” says @atlantabean of her swimwear collaboration with @piaarrobio, LPA X ATL. The two decided on a swimwear collab and increased the industry standard size for the pieces. Read more about the line — and our interview with de Cadenet Taylor and Arrobio — on WWD.com #wwdfashion (📷: Dan Doperalski)