Ryan Cohen Faces $47.2 Million Insider Trading Lawsuit from Bed Bath & Beyond
Ryan Cohen Faces $47.2 Million Insider Trading Lawsuit from Bed Bath & Beyond

Ryan Cohen Faces $47.2 Million Insider Trading Lawsuit from Bed Bath & Beyond

News summary

GameStop CEO Ryan Cohen is facing a lawsuit from the now-bankrupt Bed Bath & Beyond, which seeks to recover $47.2 million in alleged 'short-swing' profits from trades he made while holding more than a 10% stake in the company within a six-month period. U.S. District Judge Naomi Reice Buchwald has ruled that Cohen and his firm, RC Ventures, must defend against these insider trading allegations, expressing skepticism over Cohen’s claim that he was unaware of exceeding the 10% threshold due to Bed Bath's share buybacks. Cohen reportedly earned around $60 million from selling his stake in August 2022. While GameStop is not a defendant in the case, analysts are concerned about the potential impact of the lawsuit on investor confidence and note that GameStop's stock may face further downside, with some ratings designating it as a 'Sell.' The case highlights increased regulatory scrutiny on insider trading and could influence corporate practices regarding share buybacks and compliance. Bed Bath & Beyond has since been acquired by Overstock.com and rebranded as Beyond.

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Last Updated
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