Plano, Texas – Law firm Wites & Kaplan, P.A. says class-action lawsuits have been filed that allege that JC Penny Company, Inc. 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 this information so as not to worry its vendors.
It is alleged that J.C. Penney’s stock reached artificially high prices as a result, followed by a secondary share offering to obtain funds needed to continue operations which dropped share prices 13%. Investors who purchased J.C. Penney common stock between Aug. 20 and Sept. 26, 2013 may have a legal claim against J.C. Penney.