Business briefs for June 30, 2004

Wednesday, June 30, 2004 | 11:03 a.m.

Vegas firm faces discrimination suit

The U.S. Equal Employment Opportunity Commission has filed a lawsuit alleging discrimination against Hispanic workers at Las Vegas cabinet maker Western Casework Corp.

The lawsuit, filed on behalf of six Hispanic workers today, seeks class-action status to represent additional workers. It alleges that the company created a hostile work environment for the six individuals and Hispanic workers as a class. The lawsuit alleges that supervisors and co-workers physically and verbally abused the workers.

Officials at Western Casework Corp. could not be reached for comment this morning.

Chain to sell up to 54 stores

TROY, Mich. -- Kmart Holding Corp., the No. 3 U.S. discount retailer, will sell as many as 54 stores to Sears, Roebuck and Co. for about $621 million to boost its cash reserves.

The number of stores, locations, and price will be decided in the next 75 days, Troy, Mich.-based Kmart said in a statement. Kmart will operate the stores until at least March, and Sears will consider employing the stores' workers.

Kmart Chairman Edward Lampert, 41, has been adding to the company's $2.2 billion in cash by selling sites.

The company agreed this month to sell as many as 24 stores to Home Depot for $365 million.

Companies fined in muni case

NEW YORK -- UBS AG, Merrill Lynch & Co. and six other firms were ordered Tuesday to pay $610,000 in fines and restitution after securities regulators found investors received below-market prices for their municipal bonds.

The National Association of Securities Dealers said the firms purchased bonds from customers that were later resold by other dealers at "markedly higher prices," in violation of Municipal Securities Rulemaking Board rules. The rules require municipal bond dealers to deal fairly with customers and to buy and sell bonds at fair prices, the NASD said.

"The amounts (of the fines) don't seem much, but what is significant, I think, is that NASD is starting to look at the data and make judgments and enforce on that," said Kevin Olson, 43, a former trader who since 2000 sent reports on large price differences in the municipal market to regulators.

The NASD also fined Charles Schwab & Co., Inc., Edward Jones & Co., First Trust Portfolios L.P. of Lisle, Ill., Morgan Stanley, Prudential Financial Inc., and Wachovia Corp.