#information Bed Bath & Beyond CFO who died after falling from NYC high rise was subject of insider trading and fraud lawsuit just before dying, documents show #WorldNews
Bed Bath & Beyond Chief Financial Officer Gustavo Arnal was found dead on Friday after falling from a NYC constructing.
His dying got here much less that two weeks after he was named in a federal class-action lawsuit for insider trading.
The lawsuit claims Arnal and activist investor Ryan Cohen collaborated in a “pump and dump” scheme to artificially inflate the corporate’s inventory.
The Bed Bath & Beyond Chief Financial Officer Gustavo Arnal, who was found dead on Friday after falling from the 18th ground of a New York City residence constructing, not too long ago was named in a lawsuit accusing him of fraud.
The incident occurred lower than two weeks after the chief, 52, was named in a federal class-action lawsuit on allegations of federal securities fraud, insider trading, and breach of fiduciary responsibility, in line with court docket documents.
His dying additionally comes just days after Bed Bath & Beyond introduced it’s shuttering 150 stores and slashing 20% of its corporate staff.
Arnal is cited within the swimsuit together with activist investor and GameStop chairman Ryan Cohen, who the lawsuit claims collaborated with the CFO in a “fraudulent scheme to artificially inflate the price of Bed Bath & Beyond’s publicly traded stock.”
The swimsuit, filed in United States District Court for the District of Columbia on August 23, claims that Cohen and Arnal offered “materially false statements regarding the financial condition and holding situation” of Bed Bath & Beyond for his or her monetary profit. The lead plaintiff is investor Pengcheng Si.
“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] shares and options at artificially inflated prices to unsuspecting and innocent public investors and then retained control of the profits,” the swimsuit states.
On August 18, each Arnal and Cohen bought shares of the corporate, with Arnal selling more than 42,000 shares for an estimated $1 million, and Cohen selling the entirety of his 9.8% stake by way of his agency, RC Ventures, inflicting shares to plummet.
The lawsuit claims Cohen — who can also be the co-founder of Chewy and chairman of GameStop — approached the CFO about his “pump and dump” scheme in March 2022, and “convinced Gustavo that their plan would be a mutually beneficial one.”
“Under this arrangement, defendants would profit handsomely from the rise in price and could coordinate their selling of shares to optimize their returns,” the lawsuit states.
Arnal allegedly labored with JPMorgan, which is listed as a defendant within the swimsuit on claims the financial institution “aided and abetted” the plan by “enabling Cohen to use JPM’s accounts to effectuate such transactions and otherwise launder the proceeds of their criminal conduct.”
The lawsuit additional notes Cohen’s involvement in comparable plans, similar to elevating GameStop to “meme stock” standing.
“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 states.
Spokespeople for Bed Bath & Beyond and RC Ventures didn’t instantly reply to Insider’s request to remark.
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