If your company is in a cash crunch and is delaying payments to vendors, take note of this recent case: A federal jury found the Kmart Corporation’s former CEO, Charles C. Conaway, liable for misleading investors about the company’s cash crisis in the months before its 2002 bankruptcy. The Securities and Exchange Commission contended that Conaway had failed to disclose a cash shortage at the company and its program to delay payments to vendors.
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