Tag: BBBY Stock

Bed Bath & Beyond CFO Dies After Insider Trading Lawsuit Claims

Market News: Bed Bath & Beyond's CFO Gustavo Arnal has died after insider trading claims.
Market News: Bed Bath & Beyond’s CFO Gustavo Arnal has died after insider trading claims.

Bed Bath & Beyond’s CFO Gustavo Arnal died shortly after facing lawsuit claims of insider trading with GameStop’s Ryan Cohen.

His death occurred days after the company had announced it would be closing 150 stores and cutting 20% of its corporate staff.

The incident occurred less than two weeks after the executive, 52, was named in a federal class-action lawsuit on allegations of federal securities fraud, insider trading, and breach of fiduciary duty, according to court documents, per Business Insider.

The Chief Financial Officer was found dead on Friday after falling from the 18th floor of a New York City apartment building.

Arnal was cited in the suit along with activist investor and GameStop chairman Ryan Cohen, who the lawsuit claims collaborated with the CFO in a “fraudulent scheme to artificially inflate the price of Bed Bath & Beyond’s publicly traded stock.”

On August 18, both Arnal and Ryan Cohen sold shares of the company, with Arnal selling more than 42,000 shares for an estimated $1 million, and Cohen selling the entirety of his 9.8% stake through his firm, RC Ventures, causing share prices to plunge.

The lawsuit claims Cohen — who is also the co-founder of Chewy and chairman of GameStop — approached the CFO about his “pump and dump” scheme in March 2022, and “convinced Gustavo that their plan would be a mutually beneficial one.”

BBBY CFO & GameStop Chairman allegedly collude in pump and dump scheme

Ryan Cohen BBBY Insider Trading Lawsuit Claims.
Ryan Cohen BBBY insider trading lawsuit claims.

“Under this arrangement, defendants would profit handsomely from the rise in price and could coordinate their selling of shares to optimize their returns,” the lawsuit states. 

Arnal allegedly worked with JPMorgan, which is listed as a defendant in the suit on claims the bank “aided and abetted” the plan by “enabling Cohen to use JPM’s accounts to effectuate such transactions and otherwise launder the proceeds of their criminal conduct.”

Ryan Cohen made a profit of $68.1 million from his stake in Bed Bath & Beyond.

Bed Bath & Beyond was one of the so called ‘meme stocks’ that was halted last year alongside AMC Entertainment stock and GameStop after retail investors had aimed to squeeze short sellers from their positions.

Investors and shareholders are still figuring out how to process this tragic death.

Leave your thoughts down below.

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Ryan Cohen Gets 3 Bed Bath & Beyond Board Seats

GameStop Chairman and investor activist Ryan Cohen just received three Bed Bath & Beyond board seats.

BBBY stock surged as much as 8%.

Bed Bath & Beyond’s new board members were chosen by Cohen’s RC Ventures according to a Bloomberg report.

Ryah Cohen also recently increased his stake in GameStop to 11.9% this month.

Let’s break it down.

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RC Ventures joins Bed Bath & Beyond

RC Ventures LLC Bed Bath & Beyond
RC Ventures LLC Bed Bath & Beyond – Fintel

Mark Tritton, Bed Bath & Beyond’s Chief Executive Officer, said in the statement that the company looked forward to integrating the new directors’ ideas.

Two of the three members will also join a special committee to weigh strategic alternatives for Buybuy Baby (Bloomberg).

Buybuy Baby is an American chain of stores sell clothing, strollers, and other items for use with infants and young children.

Cohen stated the Bed Bath & Beyond needs to narrow its focus and maintain the right inventory mix to meet demand.

He suggested exploring the sale of Buybuy Baby.

“Our Buybuy Baby business is a tremendous asset, and we are committed to unlocking its full value,” said CEO Mark Tritton.

Ryan Cohen’s RC Ventures disclosed a 9.8% stake in Bed Bath & Beyond this month.

Marjorie L. Bowen, Shelly C. Lombard and Ben Rosenzweig have been named to the board effective immediately, and Bowen and Rosenzweig will join the four-person Buybuy Baby committee. 

The GameStop chairman increased his stake in GameStop to 11.9% this month too, purchasing 100,000 shares of GME stock (+5.56%).

GameStop’s share price soars

GameStop

GameStop shares are up more than 66% this week with the stock currently trading around $150.

This week’s surge has put GameStop at a 11.45b market cap.

Shareholders cheered Ryan Cohen on Twitter when the Chairman announced his stake increase in GameStop.

The company recently announced their partnership with Loopring, where they unveiled the beta version of GameStop’s NFT marketplace.

The partnership with Bed Bath & Beyond only seems fitting in the ‘meme stock’ world.

What are your thoughts on Ryan Cohen’s moves recently?

Leave your thoughts below.

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