Sears Gets Green Light to Wrap Up Bankruptcy Case After 4 Years

A bankruptcy judge signed off on a $180 million settlement of a Sears Holdings Corp. creditor lawsuit against former Chairman Edward S. Lampert and other executives, clearing the final hurdle for the retailer to wrap up its chapter 11 case after four years.

The lawsuit, filed in the spring of 2019 by unsecured creditors, initially sought $2 billion in damages, saying the shareholders and executives drained the retailer of its most valuable assets while losses piled up in the years leading up to bankruptcy. The suit has been the last outstanding issue before Sears’s restructuring plan, which was approved by the bankruptcy court in October 2019, can take effect.