Shareholder Class Action Brought Against Best Buy
A Pennsylvania-based law firm has filed a class action lawsuit against Best Buy on behalf of company shareholders who claim the company misrepresented its finances. A company spokeswoman said Best Buy will fight the suit.
The suit, filed in the United States District Court for the District of Minnesota by firm Barroway Topaz Kessler Meltzer & Check, accuses the company of misrepresenting its financial health to its shareholders, including "that demand for the Company’s electronic products was declining and/or weak." The complaint also alleges that the company knew but did not disclose declining performance until much later than they should have.
The company "astounded investors," the complaint said, when it said in December of last year that sales were declining, that "newer technologies" were selling slowly and that notebook sales were weak.