JCP Shares Dive After Hours On Report That Investor Is Trying To Dump A HUGE Stake In The Company

Earlier this afternoon, CNBC's John Melloy reported that a major JC Penney shareholders was trying to dump 10 million shares of stock at a price range of $16.40 to $16.60.

Melloy reports that the seller is Vornado Realty Trust, the company owned by real estate mogul Steve Roth.

This is important because Roth was named to JC Penney's Board of Directors in January 2011. Hedge funder Bill Ackman was named to the Board that same day.

In Vornado's earnings conference call last week, an analyst asked Roth if being on JC Penney's board compromised his independence if he found himself wanting to exit his investment.

"Yes," responded Roth.

But if Melloy's report is true, it would appear that Roth has no qualms about dumping shares.

This comes in the wake of a JC Penney's disastrous fourth quarter report where management reported a massive net loss as same-store sales dived 32 percent.

Shares of JCP are plunging during the after hours session. Here's a look at the action via MarketWatch:

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