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Ryan Cohen is reportedly facing a probe from the U.S. Securities and Exchange Commission (SEC) over his sale of Bed Bath & Beyond (OTCMKTS:BBBYQ) stock.
According to a recent report, the SEC is probing Cohen after he sold his stake in the company in August 2022. Investors will note that Cohen had only obtained an almost 10% stake in BBBYQ stock a few months earlier in March 2022.
The SEC probe allegedly has the agency seeking more information about Cohen’s trades of Bed Bath & Beyond. The SEC is also requesting more information concerning the investor’s communications with leaders of the retailer, per Reuters.
BBBYQ Stock Lawsuit
This wouldn’t be the first time that Cohen has faced scrutiny over his Bed Bath & Beyond stock sales. Investors in the company also filed a lawsuit against him after the sale. They claimed he had inside information that caused him to sell the shares. These investors also accused him of pumping and dumping the stock.
Cohen has argued that he didn’t mislead investors, as his filings noted he could sell some or all of his shares. However, a judge refused to dismiss the case, noting that Cohen’s social media suggested he was pushing for investors to buy or hold Bed Bath & Beyond stock, The Wall Street Journal notes.
BBBYQ stock is down slightly as of Friday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.