Shareholders Sue JC Penney After Major Investor Exits

Law360, New York (October 1, 2013, 7:44 PM EDT) -- Following a string of major exits from some of its largest shareholders, J.C. Penney Company Inc. was hit with a putative class action in Texas federal court Tuesday by recent investors who claim they were lied to about the sputtering retailer's financial health.

The lawsuit, brought by investor Alan B. Marcus, claims large investors have been cutting their stakes in J.C. Penney since the company on Sept. 27 unveiled plans to issue nearly $1 billion in new shares to deepen its reserves, sending stock prices plummeting...
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