An investigation on behalf of investors of Barnes & Noble, Inc. (NYSE: BKS) shares over potential securities laws violations by Barnes & Noble, Inc and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Barnes & Noble, Inc. (NYSE: BKS) concerning whether a series of statements by Barnes & Noble, Inc. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Barnes & Noble, Inc. reported that itsTotal Revenue declined from over $3.89 billion for the 12 months period that ended on April 29, 2017 to over $3.66 billion for the 12 months period that ended on April 28, 2018 and that its Net Income of $22.02 million declined to a Net Loss of $12.548 million over those respective time periods.

On July 3, 2018, the Board of Directors of Barnes & Noble, Inc. announced the termination of its Chief Executive Officer, Demos Parneros for violations of the Companys policies. Barnes & Noble, Inc said that the termination is not due to any disagreement with the Company regarding its financial reporting, policies or practices or any potential fraud relating thereto.

On August 28, 2018, Demos Parneros, the former Chief Executive Officer of Barnes & Noble, Inc., filed a complaint against Barnes & Noble, Inc. in the United States District Court for the Southern District of New York. The plaintiff asserts claims for breach of contract and defamation under New York law.

In a statement Barnes & Noble, Inc. said that the lawsuit filed by Demos Parneros is nothing but an attempt to extort money from the Company by a CEO who was terminated for sexual harassment, bullying behavior and other violations of company policies after being in the role for approximately one year. The allegations contained in the complaint about Len Riggio are replete with lies and mischaracterizations.

In a recent court filing, Barnes & Noble, Inc. revealed reasons behind the company's dismissal of its former CEO. According to Barnes & Noble, a female subordinate reported two incidents in which she was subject to unwanted touching and comments. Since Parneros' termination, Barnes & Noble, Inc. has reportedly received additional complaints about other inappropriate behavior by Parneros toward female employees. Further, Barnes & Noble says Parneros bullied other staffers and sabotaged the potential sale of the company earlier this year.