J.C. Penney Asks Court To Dismiss $40M Lawsuit

New York-based design firm Hudson + Broad filed a $40 million lawsuit against J.C. Penney last month for allegedly breaching a contract. Now, the retailer is asking Manhattan’s U.S. District Court to dismiss the case.

The backstory: J.C. Penney commissioned Hudson + Broad to design a unique LED fixture for their stores. If the design was approved, J.C. Penney would place an order for production and not give the design to a cheaper manufacturer. The design was approved, but the retailer allegedly gave it to another manufacturer, which means Hudson + Broad got peeved.

J.C. Penney failed to answer within 21 days of the initial lawsuit but instead asked the court to dismiss the suit on Wednesday. It has until July 27 to respond to the lawsuit before the case goes before a judge.

For their part, Hudson + Broad isn’t just going to wait around. Instead, president James Maharg created a YouTube video calling out J.C. Penney’s CEO Ron Johnson:

And another to spokesperson Ellen DeGeneres:

Looks like this case will not go away quietly.


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