J.C. Penney Didn't Disclose Florida Privacy Probe at Eckerd

Florida's attorney general has been investigating a possible privacy lapse at a J.C. Penney (JCP Quote) unit since August, but the company hasn't disclosed the probe in its regulatory filings.

The civil probe comes as Penney seeks to defend a $100 million class action lawsuit against its Largo, Fla.-based Eckerd drugstore unit. It also comes at a time when Wall Street, still reeling from Enron and associated scandals, is particularly sensitive to companies' disclosure practices; Penney stock has been battered in recent weeks by rumors of accounting irregularities, which the company has denied.

Two weeks before Penney told investors in a press release that it was "unaware of any investigation or unannounced litigation," officials at Eckerd delivered subpoenaed documents to a Florida investigator, probing whether the company violated consumer protection laws. The investigation centers on allegations that the company used prescription forms that misled customers into agreeing to release personal information. ...