Barnes & Noble, Inc.
ROBBINS GELLER RUDMAN & DOWD LLP FILES CLASS
ACTION SUIT AGAINST BARNES & NOBLE, INC.
New York – January 8, 2014 – Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/barnesnoble/) today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Barnes & Noble, Inc. (“Barnes & Noble”) (NYSE:BKS) common stock during the period between February 25, 2013 and December 5, 2013 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from January 8, 2014. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/barnesnoble/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Barnes & Noble and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Barnes & Noble is a New York City-based retailer of books and digital media and digital media devices, including its Nook e-book reader and accessories launched in 2009.
The complaint alleges that during the Class Period, Barnes & Noble issued materially false and misleading statements regarding the Company’s financial performance and future business prospects. Specifically, the complaint alleges that defendants misrepresented or failed to disclose that: (i) Barnes & Noble’s Nook e-book reader sales had dramatically declined; (ii) the Company would shutter its Nook manufacturing operations altogether; (iii) the carrying value of the Nook assets were impaired by millions of dollars; (iv) the carrying value of the Nook inventory was overstated by $133 million; (v) the Company was expecting fiscal 2014 retail losses in the high single digits; (vi) Barnes & Noble had over-accrued certain accounts receivables; (vii) Barnes & Noble was unable to provide timely audited financial results for fiscal 2013; and (viii) the Company might be forced to restate its previously reported financial results.
The complaint further alleges that following the July 8, 2013 resignation of Barnes & Noble’s Chief Executive Officer and a July 29, 2013 earnings restatement, on August 20, 2013, Barnes & Noble disclosed much worse company-wide financial results for its first quarter 2014 than the market had been led to expect, including lower sales and losses that more than doubled from the first quarter of 2013. Barnes & Noble also disclosed that the Company’s Chairman had placed on hold his previous bid to take the Company’s bookstore business private. On this news, the Company’s stock price fell more than $2 per share, or approximately 12%.
Then, on December 5, 2013, Barnes & Noble disclosed in a filing with the SEC that it had been notified on October 16, 2013 that the SEC had commenced an investigation into Barnes & Noble’s past accounting, including its decision to restate earnings for fiscal 2011 and fiscal 2012. Barnes & Noble also disclosed that the SEC was looking into a former employee’s allegations that Barnes & Noble had improperly allocated “certain information technology expenses” between its Nook and consumer bookstore groups in its financial reporting. The filing also disclosed that after a review of Barnes & Noble’s deferred tax assets and liabilities, it had “concluded” that a deferred tax liability should be reversed. On this news, the price of the Company’s stock declined again, falling almost $2 per share, or 12%, when trading resumed on December 6, 2013.
Plaintiff seeks to recover damages on behalf of all purchasers of Barnes & Noble common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in ten offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries and has been ranked number one in the number of shareholder class action recoveries in MSCI’s Top SCAS 50 every year since 2003. Please visit http://www.rgrdlaw.com for more information.
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
David A. Rosenfeld