Sears Tentatively Settles Class Action

Sears, Roebuck & Co. said it reached preliminary settlements with 39 states and customers who filed a nationwide class-action lawsuit following the retailer’s admission that it wronged customers in bankruptcy proceedings. Sears also said the Federal Trade Commission informed it that it broke the law with some of the practices it used to collect debts from some bankrupt credit card customers. The suits and other legal matters stem from the retailer’s April admission that it didn’t file the proper papers in some cases after getting bankrupt credit card customers to continue paying their bills. The Hoffman Estates, Ill.-based retailer said it would pay back customers as much as $400 million plus interest. Sears’ shares rose 50 cents to close at $49.25 on the New York Stock Exchange.