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Barnes & Nobles being investigated by SEC

By Funke Oyelae,

Barnes and Nobles' accounting is being investigated by the Security and Exchange Commission (SEC).

The SEC is looking into the the company's restatement of earnings announced July 29. Reuters reported that Barnes and Nobles had overstated certain finances at its distribution center.

A spokeswoman for Barnes and Nobles stated that the company is working with the SEC, “We are cooperating with the SEC, including responding to questions and requests for documents.”

The Associated Press reported that Barnes and Nobles is also being investigated due to an allegation by an employee that it improperly used some funds for information-technology expenses between the different departments, Nook and retail.

While the company is cooperating, the news of an SEC probe has affected its stock. According to Forbes, by 1:15 p.m. EST the bookseller stock dropped by 7.69 percent.

This is not good for company since it has been struggling with getting picky consumers interested in its e-book reader. Mashable reported in November that sales for the Nook had dropped by 32 percent.

Photo courtesy of Wikimedia Commons.

 
 

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