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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): June 26, 2002
J. C. Penney Company, Inc.
(Exact name of registrant as specified in its charter)
Delaware 1-15274 26-0037077
(State or other jurisdiction (Commission File No.) (I.R.S. Employer
of incorporation) Identification No.)
6501 Legacy Drive
Plano, Texas 75024-3698
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (972) 431-1000
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Item 5. Other Events and Regulation FD Disclosure
The Company and its subsidiaries are parties to various legal actions that
the Company believes are routine litigation incidental to its business. In
addition, Eckerd is subject to certain legal and governmental proceedings that
are described in more detail below.
In August 2001, a purported class action lawsuit was filed against Eckerd
and Merck & Co. in the Circuit Court of the Seventeenth Judicial District in and
for Broward County, Florida (Doe v. Eckerd Corporation, et al.). The plaintiff,
suing anonymously as John Doe, states that his privacy rights were violated when
he received a letter from Eckerd as part of its Therapeutic Support Program by
which Eckerd provides its patients with information on products or treatments.
The plaintiff also sued Merck & Co. and other unidentified pharmaceutical
manufacturers, claiming that mailings under this program were designed for the
purpose of inducing customers' purchases of the sponsoring manufacturers'
prescription drugs. The suit seeks certification of a class consisting of "all
persons who have provided prescriptions to any pharmacy owned and/or operated by
Eckerd and that as a result had medical information placed in a database without
his or her consent which was used by Eckerd for purposes not specifically
authorized." The case alleges causes of action against Eckerd for invasion of
privacy, breach of duty of confidentiality, breach of fiduciary duty, violation
of the Florida Deceptive and Unfair Trade Practices Act, civil conspiracy, and
violation of a Florida statute which prohibits commercial appropriation of a
person's name or likeness. It seeks damages and declaratory and injunctive
relief. Eckerd has moved to dismiss all counts of the lawsuit and that motion is
pending.
In February 2002, a purported class action lawsuit entitled Shirley Minsky,
et al. v. Eckerd Corporation was filed in the Circuit Court of the Seventeenth
Judicial District in and for Broward County, Florida. (The complaint has been
amended twice and is now entitled Gerald Mann, et al. v. Eckerd Corporation.)
The suit claims that Eckerd overcharged customers on prescriptions that were
sold in prepackaged metric decimal quantities, such as 2.5 milliliters, instead
of whole numbers like 2 or 3. The complaint seeks certification of a class of
consumers in 19 states who purchased metric decimal quantity pharmaceutical
products labeled as containing a greater quantity of product than was actually
contained in the package between February 1, 1998 and February 2, 2002, and who
were damaged thereby. The action includes causes of action for violations of the
Florida Deceptive and Unfair Trade Practices Act and breach of express warranty,
and seeks damages, restitution and injunctive relief. Eckerd has moved to
dismiss the complaint, which motion is pending.
The Company and Eckerd deny the allegations made in these lawsuits and are
pursuing the defense of these actions vigorously.
The Attorney General of Florida has initiated investigations of the
practices that are the subject of the Doe case (communication of information by
Eckerd to pharmacy customers about products and treatments) and the Mann case
(sale of metric decimal quantity products). Eckerd is cooperating fully in these
investigations.
While no assurance can be given as to the ultimate outcome of these
matters, management believes that the final resolutions of these lawsuits and
investigations, individually or in the aggregate, should not have a material
adverse effect on the Company's consolidated financial condition or results of
operations.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
J. C. PENNEY COMPANY, Inc.
By: /s/ Charles R. Lotter
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Charles R. Lotter
Executive Vice President, Secretary and
General Counsel
Date: June 26, 2002
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