Bed Bath & Beyond is responding to a new shareholder lawsuit alleging its former CFO was involved in a pump and dump scheme.
“The company is in the early stages of evaluating the complaint but based on current knowledge the company believes the claims are without merit,” Bed Bath & Beyond spokesperson Julie Strider told Yahoo Finance via email.
The lawsuit was filed by shareholder Pengcheng Si, who alleges losses of $106,480 on an investment in Bed Bath & Beyond, against former Bed Bath & Beyond CFO Gustavo Arnaland others on August 23, the week before Arnal committed suicide and the struggling retailer unveiled a turnaround plan.
The other two defendants named in the lawsuit are prominent $BBBY shareholder Ryan Cohen — who is facing scrutiny over trades he recently made — and the retailer’s oft-used banker JP Morgan.
“Cohen has historically employed pump and dump schemes to raise much needed capital and has ignited several meme stocks to jaw-dropping heights,” the lawsuit alleged.
A representative for Cohen didn’t return Yahoo Finance’s request for comment on the allegations.
Shares of Bed Bath & Beyond crashed 15% in pre-market trading on Tuesday news of Arnal’s death and the fresh allegations.
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube
Source: Read Full Article