In an order issued in late July declining to dismiss the investors’ claims, U.S. They claim his statements on Twitter and in SEC filings were part of a pump-and-dump strategy that left small investors nursing big losses. The regulator has also sought records from some of the company’s current and former board members.Ī group of Bed Bath and Beyond investors sued Cohen last year in Washington, D.C., federal court, alleging he committed fraud because he was aware of bad news about the company that hadn’t been disclosed when he sold his shares. The five-month investment netted him a profit of nearly $60 million as many investors followed Cohen blindly into the trade, believing he would follow the same playbook as he did with GameStop.Ĭohen’s apparent, if fake, interest in the company spurred a frenzy of trading that caused its stock to soar 34% in a day before collapsing when he disclosed the sales, prior to which he had gotten three new members appointed to the board.Īccording to the WSJ, the SEC has requested information from Cohen about his trades and his communications with officers or directors at Bed Bath & Beyon. it now appears that Gensler has finally figured it out, because according to the WSJ, the SEC is investigating billionaire Ryan Cohen’s ownership - and surprise dump - of Bed Bath & Beyond shares at a time when such so-called meme stocks were all the rage with investors.Īs we reported at the time, in early 2022 Cohen took a 9%, $120 million stake in Bed Bath & Beyond and pushed for changes to the housewares retailer’s sales strategy, but abruptly sold his 11.8% interest in August 2022, just days after tweeting positively about the company. One day the SEC and will figure out how management and top shareholders use call buying to force gamma squeezes of their own stock. As If Millions Of Apes Suddenly Cried Out In Terror: Ryan Cohen Dumps Entire BBBY Stake Īnd while regular readers will recall that it was last August when we mocked Gery Gensler and his SEC for chronically failing to grasp how management and top shareholders use deep OTM call buying to spark massive gamma squeezes and stock meltups - basically what Cohen did with the now bankrupt Bed Bath & Beyond.
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