This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

J.C. Penney Company, Inc. Sued By Investors After Stock Drops 13% On News Of Secondary Offering

Stocks in this article: JCP

SAN DIEGO and PLANO, Texas, Oct. 11, 2013 /PRNewswire/ --  Shareholder rights law firm Robbins Arroyo LLP announces that an investor of J.C. Penney Company, Inc.  (NYSE: JCP) has filed a federal securities fraud class action complaint in the U.S. District Court for the Eastern District of Texas.  The complaint alleges that the company and certain of its officers violated the Securities and Exchange Act of 1934 from August 20, 2013 to September 26, 2013 (the "Class Period").    

(Logo:  http://photos.prnewswire.com/prnh/20130103/MM36754LOGO)

Learn more about our investigation on our Shareholder Rights Blog: http://www.robbinsarroyo.com/shareholders-rights-blog/j-c-penney-company-inc/

JCPenney Accused of Failing to Disclose Insufficient Liquidity

Shares of JCPenney fell $1.37 per share, or 13%, on September 27, 2013, after the company issued a press release announcing the pricing of 84 million shares of its common stock at $9.65 per share in a secondary offering.  In the press release, the company stated that it "intends to use the net proceeds from the offering for general corporate purposes." 

According to the complaint, JCPenney disseminated false and misleading statements to the public regarding the company's finances, and misrepresented that the company would have sufficient liquidity to get through the year-end.  The true facts were that JCPenney:

  • would have insufficient liquidity to get through year-end and would require additional investments to make it through the holiday season; and
  • was concealing its need for liquidity so as not to add to its vendors' concerns

The truth was revealed on September 26, 2013, when analysts reported the company would need to take on additional debt to ensure that it had enough cash to keep its business operations going.

If you invested in JCPenney and would like to discuss your shareholder rights please contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.

Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law.  The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.  For more information, please go to http://www.robbinsarroyo.com.  

Attorney Advertising. Past results do not guarantee a similar outcome.  

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs