|[October 01, 2013]
Robbins Geller Rudman & Dowd LLP Files Class Action Suit against J.C. Penney Company, Inc.
SAN DIEGO --(Business Wire)--
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.
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