Settled Charges Filed Against Eight Former Officers and Directors of Spiegel, Inc.

Defendants in these actions allegedly participated in financial misstatements concerning their employer, Spiegel, Inc., and/or in covering up the company’s financial problems. Certain defendants were charged with improperly increasing inter-company fees between Spiegel’s retail subsidiaries and its bank subsidiary, which had the effect of hiding the deteriorating performance of the company’s credit card receivables portfolio. And certain defendants were charged for improperly withholding Spiegel’s required financial reports to avoid issuance by its outside auditor of a “going concern” opinion.