J.C. Penny recently settled a shareholder lawsuit related to when the company was struggling in 2013. Dishonest about the liquidity of the company, the former CEO and CFO did not see any need to raise capital. In 2013, 84 million of stock was issued to raise 800 million dollars. This heavily diluted the existing 220 million shares. The shareholders sued over this dilution J.C. Penny “denied” the allegations in the lawsuit, “but entered into this settlement to eliminate the uncertainties, burden and expense of further protracted litigation.”
J.C. Penny will not have to fund the settlement because insurance will pay. J.C. Penny is in debt $5.8 billion and currently pay interest of $400 million a year.
If you have a shareholder dispute contact Thomas E. Patterson or Patterson Law Firm at email@example.com or (312)-223-1699.