|[October 23, 2013]
Wolf Haldenstein Adler Freeman & Herz LLP Commences Class Action Lawsuit on Behalf of J.C. Penney Co., Inc. Investors
NEW YORK --(Business Wire)--
Wolf Haldenstein Adler Freeman & Herz LLP announces that a class action
lawsuit has been filed in the United States District Court, Eastern
District of Texas, on behalf of all persons who purchased or otherwise
acquired securities (including common stock, debt securities, call and
put options) of J.C. Penney Co., Inc. ("J.C. Penney" or the "Company")
(NYSE:JCP) between May 16, 2013 and September 26, 2013, inclusive (the
"Class Period"), against the Company and certain of the Company's
officers and directors ("Defendants"), alleging securities fraud
pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of
1934 [15 U.S.C. §§ 78j(b) and 78t(a)] and Rule 10b-5 promulgated
thereunder by the SEC (News - Alert) [17 C.F.R. § 240.10b-5].
The litigation is styled Murphy v. J.C. Penney
Co., Inc., et al., C.A. No. 6:13-cv-0800. A copy of the Complaint
filed in this action is available from the Court, or can be viewed on
the Wolf Haldenstein Adler Freeman & Herz LLP website at www.whafh.com.
The Complaint alleges that during the Class Period, J.C. Penney engaged
in a fraudulent scheme to artificially inflate the Company's stock price
by disseminating materially false and misleading statements, and failing
to disclose material information regarding the Company's true financial
status and operations, thereby damaging Plaintiff and other similarly
situated investors. In particular, throughout the Class Period, the
Company falsely stated that it had sufficient operating liquidity and
was primed for a "return to profitable growth." Indeed, as recently as
August 20, 2013, the Company's Executive Vic President and CFO, Kenneth
H. Hannah, assured investors that he expected the "total liquidity
available to the Company … to be in excess of $1.5 billion at year-end
given the improvements … in the [Company's] business."
On September 27, 2013, however, the Company shocked the market when it
announced the pricing of 84 million shares of its common stock in a
secondary offering and indicated that it planned to "use the proceeds
from the offering for general corporate purposes." On this news, the
price of J.C. Penney's common stock dropped 13% to close at $9.05 per
share on unusually heavy volume.
The Complaint further alleges that the true facts, which were known by
Defendants, but concealed from the investing public during the Class
Period, were that the Company did not have sufficient operating
liquidity and would require a substantial cash infusion in order to
remain a going-concern through year-end. Thus, despite the Company's
looming liquidity crisis, Defendants affirmatively misled investors by
representing that the Company was financially stable and well on its way
to achieving a complete turnaround in results.
In ignorance of the false and misleading nature of the statements
described in the Complaint, and the deceptive and manipulative devices
and contrivances employed by said Defendants, Plaintiff and the other
members of the Class relied, to their detriment, on the integrity of the
market price of J.C. Penney securities. Had Plaintiff and the other
members of the Class known the truth, they would not have purchased said
securities, or would not have purchased them at the inflated prices that
If you purchased JCP securities during the Class Period, you may request
that the Court appoint you as lead plaintiff by December 2, 2013. A lead
plaintiff is a representative party that acts on behalf of other class
members in directing the litigation. In order to be appointed lead
plaintiff, the Court must determine that the class member's claim is
typical of the claims of other class members, and that the class member
will adequately represent the class. Under certain circumstances, one or
more class members may together serve as "lead plaintiff." Your ability
to share in any recovery is not, however, affected by the decision
whether or not to serve as a lead plaintiff. You may retain Wolf
Haldenstein, or other counsel of your choice, to serve as your counsel
in this action.
Wolf Haldenstein has extensive experience in the prosecution of
securities class actions and derivative litigation in state and federal
trial and appellate courts across the country. The firm has
approximately 70 attorneys in various practice areas; and offices in
Chicago, New York City, and San Diego. The reputation and expertise of
this firm in shareholder and other class litigation has been repeatedly
recognized by the courts, which have appointed it to major positions in
complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions, please contact
Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New
York, New York 10016, by telephone at (800) 575-0735 (Gregory M.
Nespole, Esq.), via e-mail at firstname.lastname@example.org,
or visit our website at www.whafh.com.
All e-mail correspondence should make reference to "J.C. Penney".
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