On August 23, 2022, ten days before leaving the luxury skyscraper where he was living, the Venezuelan CEO who served as chief financial officer of Bed Bath & Beyond, Gustavo Arnold He was sued in Columbia District Court in Virginia for violating federal securities laws and breach of fiduciary duty.
In the 24-page document, a Virginia resident named Pengcheng Si Bed Bath & Beyond, who at the time was the company’s lead investor, sues, Ryan Cohen, his company, RC Ventures LLC, JP Morgan Securities, and Gustavo Arnal, due to “materially false statements” about the company’s financial condition to investors and the Securities and Exchange Commission, in order to maintain the inflated value of the company before its sale is involved.
The request analyzed by the digital team of News 41 It says shareholders lost about $1.2 billion because of the scheme, and that plaintiff Pengcheng Si personally lost more than $100,000.
Although Pengcheng Si signed the complaint, this is not alone, as the document submitted by his lawyers proves it is a class action lawsuit, and it is expected to be joined by all those who bought Bed Bath & Beyond shares between March 25 and August. 18, 2022.
Investor Ryan Cohen sold his 10% stake in the company
Financial data analysis website MarketBeat reported that in mid-August, Arnal has sold over 42,000 shares in Bed Bath & Beyond for nearly $1 million At about the same time, Cohen sold his entire 10% stake in the company.
On August 23, such sales plunged the value of Bed Bath & Beyond shares, falling from $30 per share to $8.78, causing many people who bought shares in the company to suffer huge losses.
The lawsuit does not contain any specific evidence that Arnal was involved in an insider trading scheme Bed Bath & Beyond, though it asserts in multiple paragraphs that there was a “strong connection” about the scheme between him, Cohen and JP Morgan.
He also states that in mid-August, Gustavo Arnal conspired with Cohen to “inflate and deflate” Bed Bath & Beyond’s stock. however, The Wall Street Journal It was recently reported that the Venezuelan CEO’s shares were sold automatically, according to a plan previously arranged in April with securities regulators.
Gustavo Arnal “flooded” emails
That same outlet indicated that as a result of the sale of his shares, and due to the Bed Bath & Beyond restructuring, Arnal was working 18 hours a day, and was “inundated with emails from individual investors and plaintiffs’ attorneys,” and that the company is investigating and reviewing all such emails. .
On September 2, New York police authorities indicated that Gustavo Arnal jumped from the 18th floor The luxury building he used to live in.
So far, Bed, Bath and Beyond say they have not seen any evidence of fraud, saying the lawsuit is baseless and employees are grieving the loss of their colleague.
Meanwhile, the retail company appointed Laura Crosen as their new manager. Crosen served as the company’s chief accounting officer, before being appointed chief financial officer.
It is estimated that more than 10,000 class action lawsuits are filed in the United States each year.
If you know someone who might go through this type of situation: Suicide Assistance Center
Suicide Prevention Line: Phone number: 135 (free line) or (011) 5275-1135 also 0800 345 1435
Source: Univision 41 New York and The Wall Street Journal