(Reuters) - Shares of Barnes & Noble Inc fell as much as 11 percent on Friday, a day after the U.S. Securities and Exchange Commission told the bookseller it had begun an investigation into a restatement of earnings announced on July 29.
The largest U.S. bookstore chain store said in July that it had to restate certain financial statements for periods prior to April 27 as it had overstated certain accruals at its distribution centers.
“We are cooperating with the SEC, including responding to questions and requests for documents,” company spokeswoman Mary Ellen Keating said in an email.
“We cannot comment on why the SEC is investigating the restatement,” she said.
The SEC’s New York regional office also said it was looking into a former non-executive employee’s allegation that the company improperly allocated certain expenses between its Nook e-reader and retail businesses.
Barnes & Noble’s shares were down about 6 percent at $15.44 in afternoon trading on the New York Stock Exchange on Friday.
Reporting by Aditi Shrivastava in Bangalore and Marina Lopes in New York; Editing by Don Sebastian