NEW YORK, Oct. 2, 2013 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC announces that a securities class action has been filed in the United States District Court for the Eastern District of Texas on behalf of those who purchased shares of J.C. Penny Company, Inc. ("JC Penny") (NYSE: JCP), during the period between August 20, 2013 and September 26, 2013, inclusive (the "Class Period").
The complaint charges JC Penny and certain of its executives with violations of federal securities laws. The complaint alleges that during the class period JC Penny and certain of its executives issued a series of materially false and misleading statements during the Class Period, specifically the complaint alleges that the Company concealed from its shareholders the following: (i) the Company would have insufficient liquidity to get through year-end and would require additional investments to make it through the holiday season, and (ii) that the Company was concealing its need for liquidity so as not to add to its vendors' concerns.
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. Then on September 27, 2013, shares of JC Penny fell $1.37 or approximately 13% to close at $9.05 after the company disclosed in a press release announcing that the company announces plans to sell 84 million new shares 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."
Plaintiff seeks to recover damages on behalf of all JC Penny shareholders who purchased common stock during the Class Period described above.