NEW YORK, NEW YORK (PRWEB) February 09, 2013
Zamansky & Associates LLC announces that it has commenced an investigation over the J.C. Penney Corporation’s (JCP) Employee Savings, Profit-Sharing and Stock Ownership Plan (the “Plan”). According to the Plan’s 2011 Annual Report filed on Form 11-K with the S.E.C. on June 29, 2012, there was over $514 million invested in company stock.
The investigation concerns whether there were possible violations of the Employee Retirement Income Security Act (“ERISA”). ERISA imposes fiduciary duties on companies to prudently manage and invest plan assets which includes its investments or offerings of company stock under the Plan.
During the last year, according to its stock chart on Yahoo Finance, JCP’s stock price has fallen from a peak of $40 per share to under $20 per share. Back in May 2012, according to AppleInsider, JCP’s stock price was down 19% after first quarter losses. AppleInsider reported that JCP’s Chief Executive Officer Ron Johnson was “already seeing criticism of the major overhaul he implemented”. In July 2012, ABCNews reported that JCP was hit with a new credit downgrade by Standard & Poor’s, lowering its corporate credit rating from “B+” from “BB-.” Now, on February 7, 2013, FT reports that lawyers for a group of bondholders sent a letter claiming that JCP had defaulted on one of its bond covenants.
According to Jacob Zamansky, “JCP employees who invested in stock under the Plan should be very concerned that they have invested imprudently.” Zamansky believes that the Plan fiduciaries should have halted purchased in JCP stock or withdrawn it as an investment option under the Plan.
What Former or Current JCP Employees Can Do
If you are a JC Penney employee or former employee and would like to discuss your legal rights, you may, without obligation or cost to you, email jake(at)zamansky(dot)com or call the law firm at (212) 742-1414.
About Zamansky & Associates
Zamansky & Associates LLC is one of the leading law firms specializing in securities fraud and financial services arbitration and class action litigation. We represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover losses.
To learn more about Zamansky, please visit our website, http://www.zamansky.com.
Zamansky & Associates, LLC
50 Broadway - 32nd Floor
New York, NY 10004
Jake Zamansky, 212-742-1414