NEW YORK, Jan. 13, 2014 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Barnes & Noble, Inc. ("Barnes & Noble" or the "Company") (NYSE: BKS) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of Barnes & Noble between February 25, 2013 and December 5, 2013 both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Barnes & Noble securities during the Class Period, you have until March 10, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Barnes & Noble, Inc. operates as a content, commerce, and technology company in the United States. The company operates in three segments: B&N Retail, B&N College, and NOOK.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Barnes & Noble's Nook e-book reader sales had dramatically declined; (ii) the carrying value of the Nook assets were materially impaired; (iii) the carrying value of the Nook inventory was overstated by $133 million; (iv) the Company was expecting significant fiscal 2014 retail losses; and (v) Barnes & Noble had over-accrued certain accounts receivables.
On August 20, 2013, Barnes & Noble disclosed disappointing company-wide financial results for its first quarter 2014, 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, Barnes & Noble stock price fell $2.06 per share or more than 12.35%, from $16.67 per share to $14.61 per share on August 20, 2013.
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 previous 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 the Company 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, Barnes & Noble stock price fell $1.96 per share, or more than 11.95%, from $16.39 per share to $14.43 per share on December 6, 2013.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
SOURCE Pomerantz LLP