Civil trial under way in Michigan for ex-Kmart CEO
ANN ARBOR, Mich. — A civil trial is under way in a federal court in Michigan where former Kmart Chief Executive Charles Conaway could be barred from serving as an officer or director of a public company.
Conaway was Kmart’s chairman and CEO in 2001. The Securities and Exchange Commission accuses him of making misleading statements to regulators and investors about the retailer’s financial health more than seven years ago. He denies the allegations.
Kmart filed for bankruptcy in January 2002 and later emerged as a smaller company. The SEC is seeking financial penalties and an order keeping Conaway out of any management role at a public company.
The trial started Wednesday in federal court in Ann Arbor and could last a month or more.