|By PR Newswire||
|January 13, 2014 07:00 PM EST||
WAYNE, Pa., Jan. 13, 2014 /PRNewswire/ -- Ryan & Maniskas, LLP announces that a class action lawsuit has been filed in the United States District Court for 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").
For more information regarding this class action suit, please contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by email at [email protected] or visit: www.rmclasslaw.com/cases/bks.
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: (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.
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.
If you are a member of the class, you may, no later than March 10, 2014, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
For more information about the case or to participate online, please visit: www.rmclasslaw.com/cases/bks or contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218, or by e-mail at [email protected]. For more information about class action cases in general or to learn more about Ryan & Maniskas, LLP, please visit our website: www.rmclasslaw.com.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.
SOURCE Ryan & Maniskas, LLP