MJP –
The owner of GameStop, Ryan Cohen, is currently facing allegations of insider trading and ill-gotten gains amounting to tens of millions of dollars.
Former Bed Bath & Beyond Inc. parent company RC Ventures LLC and Ryan Cohen are facing allegations of insider trading and $47 million in illicit gains from a lawsuit filed by the former Bed Bath & Beyond Inc.
Chewy Inc. was founded by Cohen, who is also the chairman and chief executive officer of GameStop Corp. Allegedly, Cohen, and RC Ventures made lucrative stock trades in Bed Bath & Beyond while using inside information from January to August 2022, while they were serving as statutory directors of the company.
While Cohen and RC Ventures served as directors and beneficially controlled over 10% of Bed Bath & Beyond’s stock, according to Bloomberg, the insolvent firm asserts its right to recoup these “short-swing” trading profits via securities law.
The corporation is attempting to recoup monies owed to its creditors through its bankruptcy proceedings, which include this case.
Additionally, the business is suing a New Jersey agency to recoup $19 million in tax benefits and another hedge fund for more than $300 million in trading profits related to an unsuccessful financing scheme.
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As of June 2023, RC Ventures owned 8.7 percent of GameStop, making them the biggest shareholder.
The plaintiff is represented by Radnor, Pennsylvania’s James A. Hunter.
The case pertains to 20230930-DK-BUTTERFLY-I Inc. v. Cohen, which was filed on 8/1/24. The case number is 1:24-cv-05874.
The tale is still unfolding.
