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The Associated Press reports that judge has thrown out a shareholder lawsuit that alleged that five former Kmart executives - including former CEO Charles Conaway and former president Mark Schwartz - conspired with its accounting firm to issue misleading financial statements.

The judge dismissed the suit on a technicality, saying that the law established a "virtually unreachable" standard for proving securities fraud. However, the judge also said that his ruling decision "by no means should be construed as giving defendants a completely clean bill of health."
KC's View:
They got Al Capone on tax evasion. Let's hope these shareholders find another way to skin the cat, and are able to hit these guys for all they're worth.