J.C. Penney Company, Inc. Sued by Investors After Stock Drops 13% on News of
SAN DIEGO and PLANO, Texas, Oct. 11, 2013
SAN DIEGO and PLANO, Texas, Oct. 11, 2013 /PRNewswire/ --Shareholder rights
law firm Robbins Arroyo LLP announces that an investor of J.C. Penney Company,
Inc. (NYSE: JCP) has filed a federal securities fraud class action complaint
in the U.S. District Court for the Eastern District of Texas. The complaint
alleges that the company and certain of its officers violated the Securities
and Exchange Act of 1934 from August 20, 2013 to September 26, 2013 (the
Learn more about our investigation on our Shareholder Rights Blog:
JCPenney Accused of Failing to Disclose Insufficient Liquidity
Shares ofJCPenney fell $1.37 per share, or 13%, on September 27, 2013, after
the company issued a press release announcing the pricing of 84 million shares
of its common stock at $9.65 per share in a secondary offering. In the press
release, the company stated that it "intends to use the net proceeds from the
offering for general corporate purposes."
According to the complaint, JCPenney disseminated false and misleading
statements to the public regarding the company's finances, and misrepresented
that the company would have sufficient liquidity to get through the year-end.
The true facts were that JCPenney:
owould have insufficient liquidity to get through year-end and would
require additional investments to make it through the holiday season; and
owas concealing its need for liquidity so as not to add to its vendors'
The truth was revealed on September 26, 2013, when analysts reported the
company would need to take on additional debt to ensure that it had enough
cash to keep its business operations going.
If you invested in JCPenney and would like to discuss your shareholder rights
please contact attorney Darnell R. Donahue at (800) 350-6003,
DDonahue@robbinsarroyo.com, or via the shareholder information form on the
Robbins Arroyo LLP is a nationally recognized leader in securities litigation
and shareholder rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action lawsuits, and
has helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested. For more information, please
go to http://www.robbinsarroyo.com.
Attorney Advertising.Past results do not guarantee a similar outcome.
Darnell R. Donahue
Robbins Arroyo LLP
(619) 525-3990 or Toll Free (800) 350-6003
SOURCE Robbins Arroyo LLP
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