Suit against Sears over Kmart purchase dismissed

Sears Holdings Corp., the largest U.S. department-store company, won dismissal of a 2004 shareholder lawsuit claiming the company and former Chief Executive Officer Alan Lacy misled investors by failing to disclose talks about Sears's sale to Kmart Corp.

Sears is based in Hoffman Estates.

U.S. District Judge Robert Gettleman in Chicago granted Sears's request to throw the case out in a Dec. 18 ruling. He said merger talks began after the period shareholders claimed the company had a duty to disclose them and Sears didn't have to publicize the negotiations even after they became material.

Mark Miller, an attorney for shareholders, didn’t immediately return a message left on voicemail.

Chris Brathwaite, a Sears spokesman, had no immediate comment.

The case is Maurice Levie v. Sears Roebuck & Co., 1:04-cv- 07643, United States District Court, Northern District of Illinois, Eastern Division (Chicago).