A lawsuit was filed on behalf of investors in Bed Bath & Beyond Inc. (NASDAQ:BBBY) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 09/06/2022 -- An investor, who purchased shares of Bed Bath & Beyond Inc. (NASDAQ: BBBY), filed a lawsuit in the over alleged Securities Laws violations by Bed Bath & Beyond Inc.
Investors who purchased shares of Bed Bath & Beyond Inc. (NASDAQ: BBBY) have certain options and for certain investors are short and strict deadlines running. Deadline: October 24, 2022. NASDAQ: BBBY investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
In March 2022, Ryan Cohen's corporation, RC Ventures LLC, bought a nearly 10% stake in Bed Bath & Beyond Inc.. Thereafter, Bed Bath & Beyond Inc. gave Cohen three board seats. Billionaire Ryan Cohen is the co-founder of Chewy Inc. who also serves as chairman of GameStop Corp
On August 16, 2022, Cohen filed a Schedule 13D with the SEC indicating he beneficially owned 9,450,100 shares – approximately 11.8% of the shares outstanding – of Bed Bath & Beyond Inc. (NASDAQ: BBBY).
Shares of Bed Bath & Beyond Inc. (NASDAQ: BBBY) shares rose from $4.38 per share on July 1, 2022, to $30.00 per share on August 17, 2022.
However, the plaintiff alleges that the Schedule 13D filing form August 16, 2022, 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 frenzy of Bed Bath & Beyond Inc. (NASDAQ: BBBY) stocks so he could finish selling his shares at an artificially inflated price. Cohen also filed Form 144 on paper providing notice of his intent to sell up to all his shares and additional call options. This filing was not disclosed to the public until the market closed the next day, August 17, 2022, at 5:07 pm, when Cohen finished dumping his Bed Bath & Beyond Inc. (NASDAQ: BBBY) shares.
On August 18, 2022, Cohen reported he had sold all his shares as of August 16, 2022.
After the disclosure of the filing, shares of Bed Bath & Beyond Inc. (NASDAQ: BBBY) declined to $8.45 per share on August 23, 2022.
The plaintiff alleges that as a result of materially false statements regarding the financial condition and holding situation of Bed Bath & Beyond Inc. (NASDAQ: BBBY) between March 25, 2022 and August 18, 2022, the stock price of BBBY was artificially inflated and that the Defendants, knowing that the information they disclosed was false, took advantage of the inflated stock price and used fraudulent and misleading SEC filings to sell all their Bed Bath & Beyond Inc. (NASDAQ: BBBY) shares and options at artificially inflated prices to unsuspecting and innocent public investors and then retained control of the profits.
Those who purchased shares of Bed Bath & Beyond Inc. (NASDAQ: BBBY) have certain options and should contact the Shareholders Foundation.
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