Sears pensioners have requested the Superior Court in Toronto to appoint an investigator to look into the nearly $300 Million shortfall found in the company’s pension fund. They particularly want the investigator to assess the $3 billion in payments made to Sears Canada shareholders.
The former employees are particularly targeting the U.S. hedge fund ESL Investments and have included its CEO Eddie Lampert in the complaints. This CEO has been the head of Sears since 2005 and has received the majority of the $3 billion pay out.
Lampert has said the the shareholder payments were not questionable and that most of the money came from the sale of the company’s valuable real estate holdings. Lampert has claimed that his hedge fund company had significant financial losses after the Sears bankruptcy. He said that the demise of Sears Canada is mostly attributed to a failed restructuring plan that he opposed in 2016. He also believes that the pension shortfall has been overestimated and that the money will eventually be recouped.