JC Penney Is Sued Over Share Sale, Stock Plunge

wochit business
October 01, 2013 AT 1:01 PM
(Reuters) - A JC Penney Co shareholder on Tuesday sued the struggling retailer over its surprise decision to issue more than $810 million of stock to shore up liquidity, which led to a steep drop in its share price. The plaintiff, Alan Marcus, said JC Penney publicly assured investors in August and September that its business was improving and that it saw no need to raise capital, only subsequently to agree to sell 84 million common shares at $9.65 each. ...