Barnes and Nobles accounting is being investigated by the Security and Exchange Commission (SEC).
The SEC is looking into the restatement of earning Barnes and Nobles 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 used some funds for information-technology between Nook and retail.
While the company is cooperating, the news of an SEC probe has affected its stock. Forbes reported that at 1:15pm EST the bookseller stock dropped by 7.69 percent.
This is not good for company since it has been struggling with its Nook product. Mashable reported in November that sells for the device dropped by 32 percent.
Photo courtesy of Wikimedia Commons.
