Secured a $29 million personal repayment from Barnes & Noble’s founder in landmark related-party transaction settlement
Plaintiff(s):
Shareholders of Barnes & Noble, Inc.
Case type / claims:
Derivative action alleging breaches of fiduciary duty arising from the Board’s approval of Barnes & Noble’s $596 million acquisition of College, a textbook retailer owned by founder and Chairman Leonard Riggio. Plaintiffs claimed the deal was designed to enrich Riggio at shareholders’ expense while doubling the company’s exposure to the emerging digital marketplace.
Defendant(s):
Barnes & Noble Board of Directors, including Leonard Riggio and CEO Stephen Riggio
Jurisdiction:
Delaware Chancery Court
Outcome:
- Leonard Riggio personally repaid $29 million — one of the largest non–insurance-funded shareholder recoveries in derivative litigation.
- Settlement followed extensive discovery and depositions of 20 witnesses, including company executives and advisors.
