Press release from Business Wire
Robbins Geller Rudman & Dowd LLP Files Class Action Suit against J.C. Penney Company, Inc.
Tuesday, October 01, 2013
Robbins Geller Rudman & Dowd LLP Files Class Action Suit against J.C. Penney Company, Inc.20:00 EDT Tuesday, October 01, 2013
SAN DIEGO (Business Wire) -- Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/jcpenney/) today announced that a class action has been commenced in the United States District Court for the Eastern District of Texas on behalf of purchasers of J.C. Penney Company, Inc. (“JCPenney”) (NYSE:JCP) common stock during the period between August 20, 2013 and September 26, 2013 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/jcpenney/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges JCPenney and certain of its officers and directors with violations of the Securities Exchange Act of 1934. JCPenney is a retailer, operating 1,102 department stores in 49 states and Puerto Rico as of January 28, 2012. JCPenney's business consists of selling merchandise and services to consumers through its department stores and through its Internet Website at jcp.com. The Company sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products through Sephora inside JCPenney and home furnishings.
The complaint alleges that throughout the Class Period, defendants violated the federal securities laws by disseminating false and misleading statements to the investing public in connection with the Company's finances. Specifically, defendants failed to disclose and/or misrepresented adverse facts, including that the Company would have insufficient liquidity to get through year-end and would require additional investments to make it through the holiday season, and that the Company was concealing its need for liquidity so as not to add to its vendors' concerns. As a result of defendants' false statements, JCPenney's stock traded at artificially inflated prices during the Class Period, reaching a high of $14.47 per share on September 9, 2013.
Then, on September 26, 2013, analysts reported that the Company would need to take on additional debt to ensure that it had enough cash to keep its business operations going. On September 27, 2013, JCPenney issued a press release announcing the pricing of 84 million shares of its common stock at $9.65 per share in a secondary offering, stating that “[t]he Company intends to use the net proceeds from the offering for general corporate purposes.” On this news, JCPenney's stock fell $1.37 per share to close at $9.05 per share on September 27, 2013, a one-day decline of 13% on volume of 256 million shares.
Plaintiff seeks to recover damages on behalf of all purchasers of JCPenney common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries in history and has been ranked number one in the number of shareholder class action recoveries in MSCI's Top SCAS 50 every year since 2003. Please visit http://www.rgrdlaw.com for more information.
Robbins Geller Rudman & Dowd LLP
800/449-4900 or 619/231-1058