December 29, 2018
On December 19, 2018, three lawsuits were filed by the Monitor in the Sears CCAA Proceedings, the Hon. Douglas Cunningham, Q.C. the Litigation Trustee as appointed by the Sears CCAA Court, and Morneau Shepell as the replacement Plan Administrator for the Sears Registered Retirement Plan. The claims focus on the declaration of a $509M dividend that was declared by the board of directors of Sears Canada on December 6, 2013. To view the Monitor’s claim against the dividend as a transfer at undervalue, click here. To view the Litigation Trustee’s claim for breach of fiduciary duty, breach of duty of care, oppression, and conspiracy against the former directors and officers of Sears Canada, click here. To view Morneau Shepell’s claim for breach of fiduciary duty to the Pension Plan as a result of paying the dividend, click here.
A case management judge has been appointed by the CCAA Judge to manage the litigation and set timetables for the completion of major steps.
Representative Counsel sits on a Litigation Committee with other major creditors that regularly meets with the Monitor, Litigation Trustee and Morneau to review the status of the litigation. We are working closely with the court-appointed Representatives, and we will update the website with developments in the litigation.