Dive Summary:
- Barnes & Noble has announced it is currently being investigated by the U.S. Securities and Exchange Commission.
- The case involves an investigation into Barnes & Noble’s earnings and allegations of from a former employee.
- Following the announcement, shares for America’s largest bookstore chain fell 12% - the largest single-day drop since August.
Dive Insight:
Despite moderate success with the company’s electronic Nook device, Barnes & Noble has experienced a net loss of $198.5 million in revenue during the last four quarters. Former Barnes & Noble CEO William Lynch has yet to be replaced after resigning from the company in July.