SAN DIEGO, Sept. 13, 2022 (GLOBE NEWSWIRE) — The class: Law firm for shareholder rights Robbins LLP reminds investors that a shareholder has filed a class action lawsuit on behalf of all individuals and entities that purchased or otherwise acquired Bed Bath & Beyond Inc. BBBY Common Stock between March 25, 2022 and August 18, 2022 for violating the Securities Exchange Act of 1934. BBBY operates a nationwide chain of retail stores.
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What is it about in this case: Bed Bath & Beyond Inc. (BBBY) insiders manipulated the company to facilitate an aggressive pump-and-dump program
According to the complaint, defendant Ryan Cohen has a history of using pump-and-dump schemes to ignite meme stockpiles to staggering heights. In March 2022, Cohen’s company, RC Ventures LLC, acquired a nearly 10% stake in BBBY. Thereafter, BBBY gave Cohen three board seats. For four months, BBBY stock rose 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 showing that he beneficially owned 9,450,100 shares — approximately 11.8% of the outstanding shares — of BBBY. However, the Schedule 13D filing was fundamentally incorrect and constitutes a false written filing because Cohen was selling most of the 9,450,100 shares when the filing was filed and intended to induce a BBBY stock buying spree in order for him to sell his shares could sell at an artificially inflated price. Cohen also filed a paper Form 144 announcing his intention to sell up to all of his shares and additional call options. This filing was not disclosed to the public until the market closed at 5:07 p.m. the next day, August 17, 2022, when Cohen ended the sale of his BBBY shares. Immediately following the disclosure of the filing, BBBY shares fell from a record high of $30.00 per share to about $22.5 per share after the close of business.
On August 18, 2022, Cohen reported that he had…
