Facts

Cynthia Spann filed a putative class action against J.C. Penney Corp. concerning its allegedly misleading sales ads or "fake" sales.

PLAINTIFF'S CONTENTIONS:
J.C. Penney allegedly advertised items at a discount of at least 30 percent off the stated "original" or "regular" price when, in fact, the discounted prices were the true original, regular price for such items. Plaintiff alleged J.C. Penney purported to offer fake sales to lure customers into spending more money. As such, plaintiff sued, asserting causes of action for unfair, fraudulent, and unlawful business practices in violation of Business & Professions Code Section 17200 et seq., false advertising in violation of Section 17500 et seq., and violations of the California Consumer Legal Remedies Act.

DEFENDANT'S CONTENTIONS:
J.C. Penney denied the allegations and asserted various affirmative defenses.

Result

J.C. Penney agreed to settle the fake sale action for $50 million.

Other Information

FILING DATE: Feb. 8, 2012.