New York -- Shareholder rights law firm Robbins Arroyo LLP is investigating whether certain officers and directors of Barnes & Noble, Inc. breached their fiduciary duties to shareholders.
On July 29, 2013, Barnes & Noble issued a press release announcing that it would be restating previously issued financial statements for fiscal years 2011 and 2012 due to errors related to the overstated accruals, and that those statements should not be relied upon. Then, on December 6, 2013, Barnes and Noble disclosed that as a result of the restatement and allegations that the company improperly allocated expenses between certain businesses, the Securities and Exchange Commission had launched an investigation into the previous announced restatement. Following disclosure of the investigation on December 6, 2013, Barnes & Noble shares fell 12% to close at $14.43.
In light of this news, Robbins Arroyo is investigating whether Barnes and Noble's financial reporting for fiscal years 2011 and 2012 may have been false and misleading because the company's internal accounting controls were deficient and its financial reporting and inventory management systems were deficient.