Wites & Rogers announces that class action lawsuits have been filed that allege that JC Penny Company, Inc. (NYSE: JCP) and certain of its officers and directors committed violations of the Securities Exchange Act of 1934. The complaints allege that the company made materially false and misleading statements to the investing public about the company’s financial health, including that the company would not have sufficient money to operate through the end of the year, that it would require additional investments to get through the holiday season, and that it hid such information so as not to worry its vendors. It is alleged that JC Penny’s stock reached artificially high prices as a result, reaching $14.47 per share by September 9, 2013.
On September 26, it was reported that the company would be required to take on new debt to obtain the funds needs to continue operations. On September 27, JC Penny issued a press release which confirmed the reports, explaining that the company would issue a secondary offering of 84 million shares at $9.65 per share, and it “intend[ed] to use the net proceeds from the offering for general corporate purposes.” As a result of this news, JC Penney shares dropped $1.37 per share (or 13%), to close at $9.05 per share on September 27, 2013.
If you are an investor who purchased JC Penny Common Stock between August 20, 2013 and September 26, 2013, you may have a legal claim against JC Penny and could serve as the lead plaintiff in the case. If you are interested in being the lead plaintiff, or would like to speak with an attorney about your legal rights, contact the attorneys at Wites & Rogers by email at info@witeslaw.com or toll-free at 1 (866) 277-8631.
