JC Penney to Make $50 Million Available to Settle Lawsuit

Texas-based retailer J.C. Penney will make $50 million available to settle a false advertising class-action lawsuit.

The 2012 challenged the price comparison advertising of private and exclusive branded products that J.C. Penney used in California between November 2010 and January 2012.

The lawsuit claimed the Plano-based retailer's practices didn't comply with California law.

J.C. Penney denies the allegations and said Wednesday it entered the settlement to end the uncertainties, burden and expense of further protracted litigation.

As part of the settlement, class members -- which are California customers who bought certain J.C. Penney private or exclusive branded products -- will have the option of a cash payment or store credit.

The amount of the payment or credit will depend on the total amount purchased during the class period.
 

Copyright AP - Associated Press
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