Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Photo: Scott Varley/Digital First Media/Torrance Daily Breeze/Getty Images

Sears Holdings Corp. is suing its former chairman and CEO Eddie Lampert and a handful of former board members, including U.S. Secretary of the Treasury Steven Mnuchin, for allegedly stripping the company of $2 billion in assets, reports CNBC.

Details: Sears is also filing suit with Lampert's hedge fund ESL Investments, where Mnuchin was previously a director. The suit alleges Lampert and members of the fund's board instructed executives at the retailer to manufacture false financial projections that would imply a company turnaround, despite no plan for profitability and the company's accumulation of more than $7 billion in debt, per the Wall Street Journal.

What they are saying:

"Had defendants not taken these improper and illegal actions, Sears would have had billions of dollars more to pay its third-party creditors today and would not have endured the amount of disruption, expense, and job losses resulting from its recent bankruptcy filing."
— lawyers for the company wrote in a court filing on Thursday

Sears claims Lampert declined a $1.6 billion offer for Lands' End and the Tommy Hilfiger investment group. Instead, the allegations, per CNBC, suggest: "Lands’ End was distributed to Lampert, ESL and other Sears’ shareholders for no consideration, following a prespin dividend of $500 million. On the stock’s first day of trading, its value topped $1 billion, with Lampert’s share worth at least $490 million. The stock currently has a market value of $591.3 million."

  • The case also suggests that Lambert approved the sale of 266 of Sears' most profitable locations to Seritage Growth Properties — a real estate spinoff he created — for $649 million, which was below market value, per CNBC.

A spokesperson from ESL Investments Inc. told Axios: "ESL Investments, Inc. vigorously disputes the claims in the debtors’ complaint against ESL," and the allegations are " misleading or just flat wrong."

The big picture: Lampert was Sears’s biggest shareholder and its biggest creditor before it entered bankruptcy protection, Axios' Felix Salmon notes. As the company’s biggest creditor, he ended up owning the company in its post-bankruptcy incarnation. But as the company’s controlling shareholder pre-bankruptcy, he is vulnerable to lawsuits from disgruntled lenders who lost billions of dollars.

Go deeper: The cannibal of Sears

Go deeper

Capitol repairs, security top $30M since Jan. 6 attacks

Photo: Bill Clark/CQ-Roll Call, Inc via Getty Images

The Architect of the Capitol Brett Blanton on Wednesday said that repairs and security expenses related to the Jan. 6 insurrection have already cost more than $30 million.

The state of play: Congressional appropriations committees have allocated the $30 million for repairs and perimeter fencing around the Capitol building through March 31, per NPR.

Updated 3 hours ago - Politics & Policy

White House stands by imperiled Tanden nomination after Senate panel postpones hearing

Neera Tanden. Photo: Anna Moneymaker/The New York Times/Bloomberg via Getty Images

The Senate Homeland Security Committee is postponing a confirmation hearing scheduled Wednesday for Neera Tanden, Axios has learned, a potential death knell for President Biden's nominee to lead the Office of Management and Budget.

The latest: Asked Wednesday afternoon whether Tanden has offered to withdraw her nomination, Psaki told reporters, "That’s not the stage we’re in." She noted that it's a "numbers game" and a "matter of getting one Republican" to support the nomination.

Acting Capitol Police chief: Officers were unsure of lethal force rules on Jan. 6

Photo: Chip Somodevilla/Getty Images

Acting U.S. Capitol Police Chief Yogananda Pittman wrote in prepared remarks for a House hearing on Thursday that officers in her department were "unsure of when to use lethal force" during the Jan. 6 insurrection.

Why it matters: Capitol Police did deploy lethal force on Jan. 6 — shooting and killing 35-year-old Ashli Babbit — but have faced questions over why officers appeared to be less forceful against pro-Trump rioters than participants in previous demonstrations, including those over Black Lives Matter and now-Supreme Court Justice Brett Kavanaugh.