FRANK & BIANCO LLP Files Lawsuit Against J. C. Penney Company, Inc.

NEW YORK, Sept. 12, 2014 /PRNewswire/ -- FRANK & BIANCO LLP announces that it has filed a class action complaint in the United States District Court for the Eastern District of Texas captioned Johnson v. J. C. Penney Company, Inc. et al., 14 Civ. 722.  The lawsuit is filed on behalf of purchasers of the publicly traded securities, other than the common stock, of J. C. Penney Company, Inc. ("JCPenney" or the "Company") between August 20, 2013, and September 26, 2013, inclusive (the "Class Period").

The lawsuit alleges violations of the Securities Exchange Act of 1934 (the "Exchange Act") that occurred when the Defendants issued materially false and misleading statements regarding the Company's business and prospects.  Specifically, it is alleged that during the Class Period, Defendants made false and misleading statements about or knew but failed to disclose that: (1) JCPenney was experiencing a shortage of inventory for fiscal year 2013; (2) the Company's liquidity was limited; and (3) as a result of Defendants' false and misleading statements, JCPenney's securities traded at artificially inflated prices.

Then, on September 27, 2013, the Company announced that it would seek to raise capital through an issuance of 84 million shares of common stock at $9.65 per share in a secondary offering.  The Company stated that it "intend[ed] to use the net proceeds from the offering for general corporate purposes."  On this news, JCPenney's stock declined 13 percent to close at $9.05 per share, a drop of $1.37 from the previous close. 

If you are a member of the class – i.e., if during the Class Period you purchased JCPenney publicly traded securities, other than the common stock – you may move the Court, not later than November 11, 2014, to serve as Lead Plaintiff for the class.  A Lead Plaintiff is a representative chosen by the Court who acts on behalf of other class members in directing the litigation.  You do not need to be a Lead Plaintiff to be included in the class.  If you purchased JCPenney securities and wish to discuss this litigation, or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact us.

Contact:
FRANK & BIANCO LLP
Bridget V. Hamill
(800) 497-8076
(212) 682-1853
[email protected]
www.frankandbianco.com

SOURCE FRANK & BIANCO LLP