Former Federated Head Indicted on Perjury Charges

Former Federated Department Stores Inc Chairman James Zimmerman has been indicted on perjury charges accusing him of lying to investigators looking into claims he plotted to keep upscale tableware out of Bed Bath & Beyond Inc stores.

Federated, May Department Stores Co and the makers of Lenox china and Waterford crystal agreed last August to pay $2.9 million to settle claims they conspired to block sales of Lenox and Waterford tableware by Bed Bath & Beyond. Both brands were sold by Federated and May stores.

In 2001, Bed Bath & Beyond had planned to introduce Lenox and Waterford products as part of its new tableware department, beginning with sales tests in several locations, the Attorney General's office said in August. It is alleged that Federated, May, Lenox and Waterford conspired to prevent the rollout of the goods at Bed Bath & Beyond.

During a probe by antitrust investigators, Zimmerman repeatedly denied under oath that he tried to "dissuade'' Waterford Wedgwood Plc Chairman Sir Anthony O'Reilly from selling his company's products through Bed Bath & Beyond.

Federated, owner of Bloomingdale's and Macy's, and May, which owns Lord & Taylor, did not admit wrongdoing as part of the August agreement.

Zimmerman's lawyer, Thomas Fitzpatrick, said his client "has been indicted for failing to recall a portion of a single, brief telephone conversation that occurred almost three years before his testimony. It is most unfortunate that the New York Attorney General's office has chosen to bring these charges against such a respected and honest corporate leader whose integrity has been beyond reproach.''

Zimmerman was arraigned on the charges on Wednesday before State Supreme Court Justice James Yates in Manhattan and released on $50,000 bail after pleading not guilty. He faces a maximum sentence of 7 years in prison if convicted of perjury.

"It ultimately will become perfectly clear that he told the truth and that he did not intentionally mislead the examiner,'' Fitzpatrick said.