Wites
& Kapetan, P.A. announces that class action lawsuits have been
filed that allege that JC Penny Company, Inc. (NYSE: JCP) and certain of
its officers and directors committed violations of the Securities
Exchange Act of 1934. The complaints allege that the company made
materially false and misleading statements to the investing public about
the company’s financial health, including that the company would not
have sufficient money to operate through the end of the year, that it
would require additional investments to get through the holiday season,
and that it hid such information so as not to worry its vendors. It is
alleged that JC Penny’s stock reached artificially high prices as a
result, reaching $14.47 per share by September 9, 2013.
On September 26, it was reported that the company would be required to
take on new debt to obtain the funds it needs to continue operations. On
September 27, JC Penny issued a press release which confirmed the
reports, explaining that the company would issue a secondary offering of
84 million shares at $9.65 per share, and it “intend[ed] to use the net
proceeds from the offering for general corporate purposes." As a result
of this news, JC Penney shares dropped $1.37 per share (or 13%), to
close at $9.05 per share on September 27, 2013.
If you are an investor who purchased JC Penny Common Stock between
August 20, 2013 and September 26, 2013, you may have a legal claim
against JC Penny and could serve as the lead plaintiff in the case. If
you are interested in being the lead plaintiff, or would like to speak
with an attorney about your legal rights, contact the attorneys at Wites
& Kapetan, P.A by email at info@wklawyers.com
or toll-free at 1 (866) 277-8631.
Wites & Kapetan, P.A. is a law firm with offices in Oakland, California
and Lighthouse Point, Florida, with expertise in the representation of
investors in securities fraud and investor litigation claims. You may
visit its website at www.wklawyers.com.
Michele Desoer, an attorney at Wites & Kapetan, is a member of the State
Bar of California and is responsible for the content of this
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Copyright Business Wire 2013