A number of law firms have filed class action lawsuits against Barnes & Noble that charge the company misled investors between February 25, 2013 and December 5, 2013. The suits are based on a disclosure made by B&N in its filing with the SEC in connection with its second quarter results that it had been notified that the government agency was investigating some of B&N’s past accounting practices including its decision to restate earnings in fiscal 2011 and 2012.
In one of the suits, filed by Ryan & Maniskas, the firm listed eight causes of action: the complaint alleges that B&N “misrepresented or failed to disclose: (1) Barnes & Noble's Nook e-book reader sales had dramatically declined; (2) the Company would shutter its Nook manufacturing operations altogether; (3) the carrying value of the Nook assets were impaired by millions of dollars; (4) the carrying value of the Nook inventory was overstated by $133 million; (5) the Company was expecting fiscal 2014 retail losses in the high single digits; (6) Barnes & Noble had over-accrued certain accounts receivables; (7) Barnes & Noble was unable to provide timely audited financial results for fiscal 2013; and (8) the Company might be forced to restate its previously reported financial results.”
Ryan & Maniskas urged any investors in B&N during the February 25 to December 5 period to join the class and was looking for investors willing to be a lead plaintiff. Deadline for contacting the firm is March 10.
B&N had no comment on the suits.