Karina Basso  |  March 19, 2015

Category: Consumer News

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JC Penny class action lawsuitOn March 17, a California federal judge refused to toss a false sale signs class action lawsuit filed against J.C. Penney Corp., which alleges the retail store tricked customers into buying items using fake prices. The presiding judge rejected J.C. Penney’s arguments that the plaintiff had inappropriately accused the retail company of continuing the false sale sign scheme after the proposed Class Period had already ended.

U.S. District Judge Fernando M. Olguin denied J.C. Penney’s motion to dismiss the false sale signs class action lawsuit, and by doing so he also declined to toss plaintiff Cynthia E. Spann’s fourth amended complaint allegations that J.C. Penney continued in the false price scheme after February 2012, the end date of the originally proposed Class Period.

Judge Olguin stated in that while Spann’s J.C. Penney class action lawsuit does claim the company reverted to scamming customers after the originally proposed Class Period, she did so with the intent of justifying her injunction request, requiring J.C. Penney to follow consumer laws.

Back in 2012, the plaintiff filed this false sale signs class action lawsuit alleging J.C. Penney put up fake “original” and “sale” prices with the intent of tricking consumers into paying full price for retail items while under the assumption that they were buying their items at bargain prices. The proposed Class Period for the J.C. Penney false sale signs class action lawsuit ran from Nov. 5, 2010, until Jan. 31, 2012, according to Spann’s fourth amended complaint.

After February 2012, J.C. Penney “began a new pricing strategy known as fair and square, by which it purported to offer products at everyday low prices,” Spann alleges in the J.C. Penney class action lawsuit. However, Spann alleges the retailer “largely abandoned its fair and square pricing strategy in early 2013. Since then, it has experimented with a variety of pricing practices, including a return to false comparative price advertising.”

However, J.C. Penney contends with this claim, accusing Spann of attempting to improperly expand the scope of the J.C. Penney class action lawsuit. Additionally, the retailer argues that just because the plaintiff was able to identify to instances of the false sale signs in J.C. Penney retail locations outside of the previously established Class Period, it does not justify an injunction.

Spann has taken on J.C. Penney’s argument and has countered that she did not present this evidence to demonstrate that she had been financially harmed by the company after the established Class Period, but rather sought to stop the retailers allegedly continuous “flip-flopping” between the “fair and square” pricing strategy and that previously alleged deceptive pricing model.

The plaintiff further claims that the two false sale signs and deceptive pricing incidences she cited in her J.C. Penney class action lawsuit lasted for 90 consecutive days, which she alleges is proof that that the retailer is very likely to continue deceiving consumers.

In response to J.C. Penney’s motion to dismiss the false sale signs class action lawsuit, Judge Olguin stated that he did not have to find that the plaintiff was entitled to an injunction. However, the judge did side with Spann and nixed the retailer’s motion to dismiss because the plaintiff could potentially be entitled to some form of relief from J.C. Penney.

Spann is represented by Matthew J Zevin of Stanley Law Group, Derek J. Emge of Emge and Associates and David A. Huch of Law Offices of David Huch.

The J.C. Penney False Sale Signs Class Action Lawsuit is Cynthia E. Spann v. J.C. Penney Corp. Inc., et al., Case No.  8:12-cv-00215, in the U.S. District Court for the Central District of California.

UPDATE: A judge has granted class certification to this JC Penney class action lawsuit.

UPDATE 2: According to court documents filed on Nov. 10, 2015, J.C. Penney has agreed to pay $50 million to settle the fake sale price class action lawsuit.

UPDATE 3: On Mar. 1, 2016, the J.C. Penney fake sale class action lawsuit settlement is now open to Class Members. Click here to file a claim or visit www.JCPenneySettlement.com.

UPDATE 4: Top Class Actions viewers who submitted timely and valid claims for the J.C. Penney class action settlement began receiving store vouchers ranging between $87.50 to more than $600! Congratulations to everyone who got PAID! 

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6 thoughts onJudge Won’t Toss J.C. Penney False Sale Sign Class Action

  1. Top Class Actions says:

    UPDATE 4: Top Class Actions viewers who submitted timely and valid claims for the J.C. Penney class action settlement began receiving store vouchers ranging between $87.50 to more than $600! Congratulations to everyone who got PAID! 

    1. J. Horangic says:

      I filed a claim timely with receipt verification’s etc. I have never heard from received a check from the Claims Administrator, Heffler Claims Group. I have gone on their web site, attempted to contact them, etc. to no avail. Very frustrating these companies can get away with not completing their claims responsibilities for which they have received high compensation.

  2. Top Class Actions says:

    UPDATE 3: On Mar. 1, 2016, the J.C. Penney fake sale class action lawsuit settlement is now open to Class Members. Click here to file a claim or visit http://www.JCPenneySettlement.com.

  3. Top Class Actions says:

    UPDATE 2: According to court documents filed on Nov. 10, 2015, J.C. Penney has agreed to pay $50 million to settle the fake sale price class action lawsuit.

  4. Top Class Actions says:

    UPDATE: A judge has granted class certification to this JC Penney class action lawsuit.

  5. Sherrilynn says:

    United Center

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