B&N Loses Bid To Dismiss Shareholder Suit

Law360, New York (October 22, 2010, 7:33 PM EDT) -- A state judge has refused to dismiss an investor lawsuit alleging that a cozy relationship between Barnes & Noble Inc. directors and the company’s founder, Leonard Riggio, led the board to approve the $596 million acquisition of a college bookstore operator against shareholder interests.

Vice Chancellor Leo E. Strine of the Delaware Chancery Court denied the defendants’ motion to dismiss the case Thursday, questioning why the move to buy Barnes & Noble College Booksellers Inc. from Riggio came so late in the game.

The two companies...
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