NEW YORK, Oct. 7, 2013 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against J.C. Penney Company, Inc. ("JCPenney" or the "Company") (NYSE: JCP ) and certain of its officers. The class action, filed in United States District Court, Eastern District of Texas, and docketed under 13-cv-00750, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of JCPenney between August 20, 2013 and September 26, 2013 both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased JCPenney securities during the Class Period, you have until December 2, 2013 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com . To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
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 made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. 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 27, 2013, JCPenney issued a press release announcing the pricing of 84.0 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 shares declined $1.37 per share or 13%, to close at $9.05 per share on September 27, 2013.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com .
Robert S. Willoughby Pomerantz Grossman Hufford Dahlstrom & Gross LLP
