B&N Investor's Claims Of Board, CEO Coziness Fizzle

Law360, New York (October 5, 2011, 7:27 PM EDT) -- A New York federal judge on Wednesday dismissed a Barnes & Noble Inc. shareholder's derivative suit against the company, saying he failed to show that board members' cozy relationship with CEO Leonard Riggio caused them to rubber-stamp moves that benefited Riggio but hurt the company.

Because the plaintiff merely speculates that several board actions, including a $514 million acquisition of a company owned by Riggio, were spurred by close ties to the CEO, U.S. District Judge Louis Stanton said the case must be dismissed.

“The allegations...
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