Barnes & Noble, Inc. (BKS) shareholders have sued the company over the recent purchase of Barnes & Noble College Booksellers. According to Courthouse News, the shareholders claim that the deal was “a waste corporate assets” and called for more transparency.
Earlier this month reached an agreement to acquire the privately-held company B&N College Booksellers in a an estimated $596 million transaction. Owned by B&N Chairman Leonard Riggio, the college bookseller runs 624 college bookstores around the country, supplying books to four million students.
Here’s more from the article: “Buying the division will double the company’s exposure to a market that is already at risk, and reduces its cash on hand, according to the complaint.The shareholders sued Barnes & Noble, Riggio and eight company directors, including Riggio’s brother, Stephen, for breach of fiduciary duty.” (Via Publishers Lunch)