San Diego, CA -- (SBWIRE) -- 10/07/2013 -- An investor, who purchased shares of J.C. Penney Company, Inc. (NYSE:JCP), filed a lawsuit in the U.S. District Court for the Eastern District of Texas over alleged violations of Federal Securities Laws by J.C. Penney Company, Inc. in connection with certain allegedly false and misleading statements made between August 20, 2013 and September 26, 2013

Investors who purchased a significant amount of shares of J.C. Penney Company, Inc. (NYSE:JCP) between August 20, 2013 and September 26, 2013, and / or those who purchased NYSE:JCP shares prior to August 2013 and currently hold any of those shares have certain options and for certain investors are short and strict deadlines running. Deadline: December 2, 2013. NYSE:JCP investors should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.

According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of J.C. Penney Company, Inc. (NYSE:JCP) between August 20, 2013 and September 26, 2013, that J.C. Penney Company, Inc. and certain of its officers and directors violated federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.

On August 20, 2013, J.C. Penney Company, Inc. reported its 2013 fiscal second quarter results. During a conference call to the question “looking forward do you think you would need any additional outside liquidity?” the J.C. Penney's CFO responded with “We’re certainly, as we look through the end of the year, the $1.5 billion of liquidity that we have projected we are not assuming that we need any additional financing.”

However, the plaintiff claims that defendants failed to disclose and/or misrepresented adverse facts, including that J.C. Penney Company, Inc. would have insufficient liquidity to get through year-end and would require additional investments to make it through the holiday season, and that J.C. Penney Company, Inc. was concealing its need for liquidity so as not to add to its vendors' concerns. The plaintiff says that as a result of defendants' allegedly false statements, J.C. Penney Company, Inc.'s stock traded at artificially inflated prices between August 20, 2013 and September 26, 2013, reaching a high of $14.47 per share on September 9, 2013.

Then on Sept. 26, 2013, J.C. Penney Company, Inc. announced a proposed Public Offering of Common Stock. J.C. Penney Company, Inc. said that it has commenced an underwritten public offering of 84.0 million shares of its common stock and that it intends to use the net proceeds from the offering for general corporate purposes. Based upon a closing price for NYSE:JCP shares of $10.42 on September 26, 84 million NYSE:JCP shares would sell for $875.28 million.

Shares of J.C. Penney Company, Inc. (NYSE:JCP) declined from $14.47 per share in early September 2013 to a close of $7.86 per share on Oct. 4, 2013.

Those who purchased shares of J.C. Penney Company, Inc. have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com