GameStop CEO Ryan Cohen Faces $47.2M Lawsuit from Bed Bath & Beyond

Ryan Cohen, CEO of GameStop, must face a lawsuit from the company formerly known as Bed Bath & Beyond, which seeks to recover $47.2 million in profits Cohen allegedly made from 'short-swing' stock trades before the retailer's bankruptcy. U.S. District Judge Naomi Reice Buchwald ruled that Cohen and his firm RC Ventures must defend against claims they bought and sold more than a 10% stake in Bed Bath & Beyond within six months, which could make them liable for insider trading profits. Cohen argued he was unaware his stake exceeded 10% due to the company's ongoing stock buybacks, but the judge noted these buybacks were publicly disclosed, casting doubt on Cohen's defense. The lawsuit claims Cohen abruptly sold his stake in August 2022 for a profit of about $60 million. The judge dismissed a separate claim regarding Cohen's influence as a 'director by deputization' after securing board seats to avoid a proxy fight. GameStop itself is not a defendant in the lawsuit.