Ryan Cohen, CEO of GameStop, is facing a lawsuit from the now-bankrupt Bed Bath & Beyond to retrieve $47.2 million of profits stemming from stock trades. A federal judge concluded that Cohen's claims of ignorance regarding his 10% stake when he invested in March 2022 were questionable, given the company's disclosed share buyback program. Cohen sold his stakes for a $60 million profit shortly before Bed Bath filed for bankruptcy in April 2023. Although Cohenâs legal representatives did not respond, the case raises significant questions about insider trading and disclosure responsibilities.
Cohenâs team claims he was unaware he exceeded the 10% threshold when investing, citing a lack of knowledge about the retailer's repurchase program.
Judge Buchwald noted that Bed Bath disclosed its buyback initiative, questioning the plausibility of Cohen investing without reviewing essential investor disclosures.
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