SEC Puts The Lid On Its J.C. Penney Investigation

In December last year, Alan Marcus, a shareholder of J.C. Penney Company, Inc. (NYSE:JCP), went to court against the company for its abrupt announcement in September of a common stock offering amounting over $810M, alleging it kept the reality of its finances under wraps.

Shareholders up in arms

The fact of the offering triggered a sell-off in the shares of J.C. Penney Company, Inc. (NYSE:JCP) as investors panicked over its dilutive effect, and worried that the company’s liquidity and cash position were not as good as what it had earlier indicated.

The issue received widespread media attention...