INVESTOR ALERT: Edelson Lechtzin LLP is Investigating Securities Fraud Claims on Behalf of Bed Bath & Beyond, Inc. (NASDAQ: BBBY) Shareholders
NEWTOWN, PA, September 8, 2022 — The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of all purchasers of Bed Bath & Beyond, Inc. (“Bed Bath & Beyond” or the “Company”) (NASDAQ: BBBY) common stock between March 25, 2022, and August 18, 2022, inclusive (the “Class Period”).
Investors who purchased Bed Bath & Beyond common stock during the Class Period may move the U.S. District Court for the District of Columbia to appoint them as lead plaintiff, no later than October 24, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Investors who wish to discuss the lead plaintiff selection process should contact Edelson Lechtzin LLP, toll free at 844-696-7492, or by e-mail at [email protected]. A copy of the class action complaint can be viewed HERE.
Background on the Bed Bath & Beyond Securities Fraud Class Action
Bed Bath & Beyond is an American chain of domestic merchandise retail stores located throughout the United States, Canada, Mexico, and Puerto Rico. A class action lawsuit has been filed against Bed Bath & Beyond, the Company’s former CFO, Gustavo Arnal, and billionaire investor Ryan Cohen, alleging that they engaged in an illegal “pump and dump” scheme.
Specifically, it is alleged that Ryan Cohen, through his investment firm RC Ventures LLC, sent a letter to the Board of Directors of Bed Bath & Beyond on March 6, 2022, announcing that he owned 9.8% stake in the Company and criticizing management. On this news the price of Bed Bath & Beyond stock leaped 34% on March 7, 2022, on extremely heavy volume. On March 25, 2022, Bed Bath & Beyond added three new directors appointed from Ryan Cohen’s firm, RC Ventures LLC.
On August 15, 2022, Cohen, through his investment firm, announced in a SEC filing, purchases of over one million January 2023 call options with exercise prices at $60, $75, and $80—notably higher than Bed Bath & Beyond shares were then trading. On this news, Bed Bath & Beyond stock closed 29% higher on August 16, 2022, on extremely heavy trading volume. Insiders reaped profits of at least $110 million from their sales of BBBY stock from August 16 to August 17, 2022.
Then, on August 18, 2022, Cohen announced that he would sell his entire stake in Bed Bath & Beyond. Also on August 18, 2022, Bloomberg published an article entitled, “Bed Bath & Beyond Taps Kirkland & Ellis for Help Addressing Debt Load,” which revealed that the Company had hired a law firm for help with its debt. On this news, the price of BBBY stock plummeted $4.53 per share (a 19% drop), to close at $18.55 per share on August 18, 2022, on extremely heavy trading volume. BBBY stock continued to drop on August 19, 2022, falling to $7.52 per share (a 40% drop), close, to close at $11.03 per share, on extremely heavy trading volume. BBBY stock fell to new lows of $9.68, on August 19, 2022 (a 52.6% drop); $9.24 per share on August 22, 2022 (a 16.23% drop); and $8.78, on August 23, 2022 (a 4.98% drop).
Tragically, on September 2, 2022, news reports confirmed that Gustavo Arnal had fallen to his death from his residence in Tribeca’s Jenga Tower. His death was ruled a suicide.
If you have held BBBY stock continuously since March 5, 2022, and have investment losses, please contact our firm to discuss your legal options:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Email: [email protected]
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.