Only in the USA. Anyone with an investment in the consumer electronics industry, knew that by mid 2009 sales were going soft and most people knew that Best Buy had an advantage after their arch rival Circuit City collapsed that helped them hold up sales.
Despite this 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 suit is seeking unspecified damages.
“Best Buy has a long-standing practice of not commenting on pending litigation. That said, I can tell you that we believe the case lacks merit. We will defend the case vigorously,” Best Buy spokeswoman Sue Busch Nehring told Dealerscope.