SAN DIEGO–(BUSINESS WIRE)–Law firm in shareholder law Robbins LLP Investigating Bed Bath & Beyond Corporation (NASDAQ: BBBY) and its Officers and Directors to Determine Whether They Breached Their Fiduciary Duties or Violated Securities Laws in the Aggressive Insider-Initiated Pump-and-Dump Scheme . BBBY operates a national chain of retail stores.
If you would like more information about our investigation into the misconduct of Bed Bath & Beyond Corporation, click here.
What this case is about: According to the lawsuit filed against BBBY, insiders manipulated the company to allow an aggressive pump-and-dump system that harmed shareholders. Specifically, defendant Ryan Cohen has a history of using pump and dump systems to ignite meme stocks to jaw-dropping heights. In March 2022, Cohen’s company, RC Ventures LLC, purchased a nearly 10% stake in BBBY. Subsequently, BBBY gave Cohen three seats on the board. For four months, BBBY stock fell from its lowest price of $4.38 per share on July 1, 2022 to $30.00 per share on August 17, 2022.
On August 16, 2022, Cohen filed a Schedule 13D with the SEC stating that he beneficially owned 9,450,100 shares – approximately 11.8% of the outstanding shares – of BBBY. However, the Schedule 13D filing was materially false and constitutes a false written filing because Cohen sold most of the 9,450,100 shares when the filing was submitted and intended to create a buying spree. BBBY shares so he can finish selling his shares at an artificially inflated price. . Cohen also filed Form 144 on paper notifying his intention to sell up to all of his stock and additional call options. This filing was not publicly disclosed until the market closed the following day, August 17, 2022, at 5:07 p.m., when Cohen finished selling his BBBY shares. Immediately after the disclosure of the filing, BBBY shares fell after hours from a record high of $30.00 per share to around $22.5 per share.
On August 18, 2022, Cohen announced that he had sold all of his shares through August 16, 2022. At this news, the BBBY sock fell 45%. Over the next few days, the stock fell from its August 17 high to close at $8.78 per share on August 23, 2022. The company lost more than $800 million in market capitalization while insiders profited of at least $110 million from their sales on August 16 and 17.
Next steps: If you acquired shares of Bed Bath & Beyond Corporation between March 25, 2022 and August 18, 2022, you have legal options. Contact Robbins LLP for more information about your rights.
All representation is done on a contingent fee basis. Shareholders do not pay any fees or expenses.
Contact us for more information:
Aaron Dumas
(800) 350-6003
adumas@robbinsllp.com
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About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP are dedicated to helping shareholders recoup losses, improving corporate governance structures and holding corporate executives responsible for their wrongdoings since 2002. To be notified if a class action lawsuit against Bed Bath & Beyond Corporation takes hold or to receive free alerts when corporate executives commit wrongdoing, sign up for Watch Inventory today.
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