Barnes & Noble is Countersuing its Ex-CEO

The largest bookstore chain in the United States, Barnes & Noble Inc. has filed a countersuit seeking damages from the company’s former CEO, Demos Parneros.

Parneros had been fired due to claims of sexual harrassment of a female employee. According to the company, Parneros breached his duties of loyalty and good faith and acted as a “faithless servant” by sexually harassing the female employee. He has also been accused of bullying subordinates and trying to “sabotage” a potential acquisition of the company.

It was at the end of August that Parneros accused the retailer of breaching contract and defamation, alleging that Leonard Riggio, founder and largest shareholder, had made up reasons to fire him in July. Parneros more than $4 million of severance plus other damages.

Barnes & Noble’s countersuit says that Parneros’ lawsuit “downplays what occurred,” and that the company should recoup his salary, bonus and other benefits during the period of his “disloyal conduct” and cancel his outstanding equity awards.

The company also revealed that it has received “additional complaints about Parneros’ inappropriate behavior toward women” since he was fired.

Disclaimer: We have no position in Barnes & Noble, Inc. (NYSE: BKS) and have not been compensated for this article.