Court Ruling To Hurt J.C. Penney Company Inc (NYSE:JCP)
The Attorney General’s Office in Iowa said that a judge has now ordered 2 companies to shell out over $2.7M in refunds over club memberships, to customers in the state. On Thursday, Judge Richard Blane, of the Polk County District approved a consent judgment against J.C. Penney Company, Inc (NYSE:JCP)’s Direct marketing Services and Stonebridge Benefit Services. Both these companies are in Plano, Texas.
In 2011 August, Tom Miller, the Iowa Attorney General filed a suit against Stonebridge and in March 2013, J.C. Penney Company, Inc (NYSE:JCP)’s Direct marketing Services was added to the lawsuit. This lawsuits stated that both the companies had violated the law in the state by enrolling literally thousands of customers from J.C. Penney Company, Inc (NYSE:JCP) into the program that they were not aware about and then charged to their credit cards for it, repeatedly. The companies will now have to pay-up $2.7m to customers plus $164.375 to Iowa State for consumer-fraud enforcement.
In Friday’s trading, J.C. Penney Company, Inc (NYSE:JCP) dropped by 4.76%. The opening price of the shares was $7.40, which climbed to an intraday high of $7.45 and dipped to a close of $7.00. Approximately 52.99 million shares were traded on Friday while an average volume of 45.07 million shares were traded over a 30 day period. The 52-week low of J.C. Penney Company, Inc (NYSE:JCP) shares is $6.97 and its 52-week high is $26.83. J.C. Penney Company, Inc (NYSE:JCP) has a market capitalization of $2.13 billion.
About the company
J.C. Penney Company, Inc (NYSE:JCP) is a holding company. It is a retailer that operates 1,102 department-stores across 49 states as well as Puerto Rico as of 28 January 2012. Its business is the sale of services and merchandise to consumers via its department stores and via its site, jcp.com.