|[January 08, 2014]
Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Barnes & Noble, Inc.
NEW YORK --(Business Wire)--
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
Then, on December 5, 2013, Barnes & Noble disclosed in a filing with the
SEC (News - Alert) 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.
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