Mattress Bath & Past is responding to a new shareholder lawsuit alleging its former CFO was concerned in a pump and dump scheme.
“The business is in the early phases of evaluating the criticism but primarily based on latest knowledge the company thinks the statements are with out merit,” Bed Bath & Further than spokesperson Julie Strider advised Yahoo Finance by means of electronic mail.
The lawsuit was submitted by shareholder Pengcheng Si, who alleges losses of $106,480 on an expense in Bed Bath & Beyond, from previous Mattress Bathtub & Further than CFO Gustavo Arnal and some others on August 23, the 7 days prior to Arnal committed suicide and the having difficulties retailer unveiled a turnaround plan.
The other two defendants named in the lawsuit are distinguished $BBBY shareholder Ryan Cohen — who is dealing with scrutiny above trades he not long ago designed — and the retailer’s oft-employed banker JP Morgan.
“Cohen has historically employed pump and dump strategies to raise significantly necessary funds and has ignited quite a few meme stocks to jaw-dropping heights,” the lawsuit alleged.
A representative for Cohen failed to return Yahoo Finance’s ask for for comment on the allegations.
Shares of Mattress Tub & Beyond crashed 15% in pre-market trading on Tuesday information of Arnal’s demise and the clean allegations.
Brian Sozzi is an editor-at-huge and anchor at Yahoo Finance. Observe Sozzi on Twitter @BrianSozzi and on LinkedIn.
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