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NATION

Ex-Kmart chief accused of lying before bankruptcy

ANN ARBOR, Mich. — The former head of Kmart Corp. used “lies, deceptions and half-truths” to keep investors in the dark about a cash crisis in the months leading to a 2002 bankruptcy, a government lawyer told jurors Friday at the end of a civil fraud trial.

The Securities and Exchange Commission is not accusing Charles Conaway of cooking Kmart’s books or fleecing the company for personal gain. The allegations center on a phone call with stock analysts and a quarterly report to regulators, both in November 2001. The government says Conaway is liable for Kmart’s failing to specifically disclose that it had been delaying payments to vendors and prioritizing bills to save cash.

Southwest Airlines to add fees for kids alone, pets

DALLAS — Southwest Airlines Co., which has bashed competitors for charging fees, said Friday it will add new fees for passengers who bring small pets onboard and for unaccompanied minors. It will also raise the charge for checking a third piece of luggage or an overweight bag.

Southwest has spent heavily on television commercials that blasted other airlines for charging “hidden fees.”

Associated Press