SI v. BED BATH & BEYOND CORPORATION et al
Case Summary
On August 23, 2022, Pengcheng Si ("Plaintiff"), individually and on behalf of all other persons similarly situated, represented by Pengcheng Si of DWS Law Group, PLLC, filed a class action civil lawsuit against Bed Bath & Beyond Corporation ("BBBY" or the "Company"), J.P. Morgan Securities LLC (“JPM”), RC Ventures LLC (“RC”), Ryan Cohen (“Cohen”), and Arnal Gustavo (“Gustavo”) (collectively, "Defendants"), alleging making misleading statements and omissions to investors regarding: BBBY's strategic company plans and financial condition; cooperation with Cohen and RC; and reports of shares holding and selling during the class period. This case was filed in the U.S. District Court for the District of Columbia with Judge Trevor N. McFadden presiding.
Plaintiff filed this federal securities class action on behalf of a class consisting of all persons or entities, other than Defendants, who purchased or otherwise acquired BBBY common stock from March 25, 2022 to August 18, 2022, inclusive, (the "Class Period").
In the complaint, Plaintiff alleged that “from March 2022 through August 2022, Cohen, in conspiracy with Gustavo, JPM, and others, engaged in a fraudulent scheme to artificially inflate the price of BBBY publicly traded stock. More specifically, Cohen, Gustavo, and others, with JPM’s aiding and abetting, blatantly misrepresented the value and profitability of BBBY, inter alia, causing BBBY to (a) report revenues that was fictitious, and (b) announce publicly that the Company is successfully on the way spinning off Buybuy Baby to ‘unlock[] full value’ of this ‘tremendous asset’, when, in reality, the Buybuy Baby business were small, with minimal revenues, and outside companies would pay BBBY only a small fraction of the announced prices.”
Plaintiff further alleged that “on August 18, 2022, BBBY filed Form 8K announcing that ‘[on August 17, 2022, in response to certain media inquiries, Bed Bath & Beyond Inc. (the ‘Company’) made the following statement: ‘We were pleased to have reached a constructive agreement with RC Ventures in March and are committed to maximizing value for all shareholders.’ Still, BBBY made no mention of the buying frenzy pumping up the price of BBBY stock and then the share-dumping crash created by Cohen, Gustavo, and JPM’s collusion.”
Plaintiff also alleged that “BBBY’s conduct with respect to August 18, 2022 announcement constitutes acts of fraud, dishonesty and furtherance of Cohen and Gustavo’s criminal activities. Gustavo, Cohen, and JPM discussed when to exit their trade positions and therefore the August 17, 2022 statement was materially false and constitute a false statement. Defendants had concealed material facts and misled investors when they liquidated the Company's stocks.”
Plaintiff additionally alleged that “BBBY intentionally provided the materially false statement knowing that it would have a material impact on the market value of BBBY.”
Plaintiff presented seven claims for relief alleging breach of fiduciary duty, aiding and abetting breach of fiduciary duty, fraud, aiding and abetting fraud, negligent misrepresentation, and violations of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5.
In the prayer for relief, Plaintiff requested certification as a class action, damages, and fees.
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Case Details
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Case Number:
1:22-CV-02541
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Filing Date:
08/23/2022
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Case Status:
Pending - Other Pending
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Case Type:
Finance - Security/Commodity/Exchange
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Court:
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Courthouse:
Judge Details
Presiding Judge
Trevor N. McFadden
Party Details
Plaintiff
PENGCHENG SI
Defendants
RC VENTURES LLC
RYAN COHEN
ARNAL GUSTAVO
BED BATH & BEYOND CORPORATION
JP MORGAN SECURITIES LLC
Attorney/Law Firm Details
Plaintiff Attorneys
Jan Messerschmidt
Steven J. Toll
Court Documents
Exhibit CMST Resume
Exhibit BGG Resume
Exhibit Pomerantz Resume
Exhibit Bratya Declaration
Exhibit Damages Calculation
Declaration Lieberman Declaration
Text of Proposed Order Proposed Order
Memorandum in Support Memorandum in Support
Main Document
RESOLVED...NOTICE of Provisional/Government Not Certified Status re #5 NOTICE of Appearance by Jan Messerschmidt on behalf of PENGCHENG SI (Messerschmidt, Jan).Your attorney renewal certification has not been received. As a result, your membership with the U.S. District & Bankruptcy Courts for the District of Columbia is not in good standing, and you are not permitted to file. Pursuant to Local Civil Rule 83.9, you must immediately correct your membership status by following the appropriate instructions on this page of our website: https://www.dcd.uscourts.gov/attorney-renewal. Please be advised that the presiding judge in this case has been notified that you are currently not in good standing to file in this court. Renewal Due by 9/16/2022. (zbaj) Modified on 9/9/2022 (zbaj). (Entered: 09/09/2022)
(#4) NOTICE of Appearance by Steven J. Toll on behalf of PENGCHENG SI (Toll, Steven) (Entered: 09/08/2022)
(#3) STANDING ORDER Establishing Procedures for Cases Before Judge Trevor N. McFadden. The parties are hereby ORDERED to read and comply with the directives in the attached standing order. Signed by Judge Trevor N. McFadden on 8/26/22. (lctnm1) (Entered: 08/26/2022)
Exhibit
Civil Cover Sheet
Main Document
Exhibit
Civil Cover Sheet
Main Document
Docket Entries
DocketMINUTE ORDER: Allen Gallegly and Bratya SPRL must file any opposition to the other partys Motion to Appoint Lead Plaintiff by November 14, 2022. Any opposition must address, in detail, which party has "the largest financial interest" in the litigation. 15 U.S.C. 78u-4(a)(3)(B)(iii)((bb). And any Reply must be filed by November 21, 2022. SO ORDERED. Signed by Judge Trevor N. McFadden on 11/9/2022. (lctnm1) (Entered: 11/09/2022)
[-] Read LessDocket(#14) MOTION to Appoint Lead Plaintiff by BRATYA SPRL (Attachments: #1 Memorandum in Support Memorandum in Support, #2 Text of Proposed Order Proposed Order, #3 Declaration Lieberman Declaration, #4 Exhibit Damages Calculation, #5 Exhibit PSLRA Notice, #6 Exhibit Bratya Certification, #7 Exhibit Bratya Declaration, #8 Exhibit Pomerantz Resume, #9 Exhibit BGG Resume, #10 Exhibit CMST Resume)(Messerschmidt, Jan) Modified filer on 11/8/2022 (zed). (Entered: 11/07/2022)
[-] Read LessDocket(#13) DECLARATION of Frederic S. Fox by Allen Gallegly re #12 MOTION to Appoint Lead Plaintiff and Approval of Lead Plaintiff's Selection of Lead Counsel filed by Allen Gallegly. (Attachments: #1 Exhibit A -September 8, 2022 Notice of Pendency of this Class Action on Accesswire, #2 Exhibit B - Galleglys sworn Certification pursuant to the Private Securities Litigation Reform Act of 1995, #3 Exhibit C - Chart calculating the losses incurred by Gallegly prepared by counsel, #4 Exhibit D - Firm resume of Kaplan Fox & Kilsheimer LLP)(Fox, Frederic) (Entered: 11/07/2022)
[-] Read LessDocket(#12) MOTION to Appoint Lead Plaintiff and Approval of Lead Plaintiff's Selection of Lead Counsel by Allen Gallegly. (Attachments: #1 Memorandum in Support, #2 Text of Proposed Order)(Fox, Frederic) (Entered: 11/07/2022)
[-] Read LessDocket(#11) SUMMONS (4) Issued Electronically as to BED BATH & BEYOND CORPORATION, RYAN COHEN, JP MORGAN SECURITIES LLC, RC VENTURES LLC. (zed) (Entered: 11/07/2022)
[-] Read LessDocket(#10) REQUEST FOR SUMMONS TO ISSUE filed by PENGCHENG SI. (Attachments: #1 Summons, #2 Summons, #3 Summons)(Messerschmidt, Jan) (Entered: 11/04/2022)
[-] Read LessDocketSet/Reset Deadlines: Time to effectuate service due by 12/21/2022. (hmc) (Entered: 11/03/2022)
[-] Read LessDocketMINUTE ORDER: Plaintiff's #9 Motion for Extension of Time to Serve Summons and Amended Complaint is Granted for good cause. Fed. R. Civ. P. 4(m). Plaintiff must serve Defendants by December 21, 2022. SO ORDERED. Signed by Judge Trevor N. McFadden on 11/3/2022. (lctnm1) (Entered: 11/03/2022)
[-] Read LessDocket(#9) MOTION for Extension of Time to Serve Summons and Amended Complaint on Defendants by PENGCHENG SI. (Attachments: #1 Memorandum in Support, #2 Text of Proposed Order)(Messerschmidt, Jan) (Entered: 11/02/2022)
[-] Read LessDocket(#8) AMENDED COMPLAINT against All Defendants with Jury Demand filed by PENGCHENG SI. (Attachments: #1 Exhibit Redline Copy)(Messerschmidt, Jan) (Entered: 11/02/2022)
[-] Read LessDocketRESOLVED...NOTICE of Provisional/Government Not Certified Status re #5 NOTICE of Appearance by Jan Messerschmidt on behalf of PENGCHENG SI (Messerschmidt, Jan).Your attorney renewal certification has not been received. As a result, your membership with the U.S. District & Bankruptcy Courts for the District of Columbia is not in good standing, and you are not permitted to file. Pursuant to Local Civil Rule 83.9, you must immediately correct your membership status by following the appropriate instructions on this page of our website: https://www.dcd.uscourts.gov/attorney-renewal. Please be advised that the presiding judge in this case has been notified that you are currently not in good standing to file in this court. Renewal Due by 9/16/2022. (zbaj) Modified on 9/9/2022 (zbaj). (Entered: 09/09/2022)
[-] Read LessDocket(#5) NOTICE of Appearance by Jan Messerschmidt on behalf of PENGCHENG SI (Messerschmidt, Jan) (Entered: 09/08/2022)
[-] Read LessDocket(#4) NOTICE of Appearance by Steven J. Toll on behalf of PENGCHENG SI (Toll, Steven) (Entered: 09/08/2022)
[-] Read LessDocket(#3) STANDING ORDER Establishing Procedures for Cases Before Judge Trevor N. McFadden. The parties are hereby ORDERED to read and comply with the directives in the attached standing order. Signed by Judge Trevor N. McFadden on 8/26/22. (lctnm1) (Entered: 08/26/2022)
[-] Read LessDocketSUMMONS Not Issued as to All Defendants (znmg) (Entered: 08/26/2022)
[-] Read LessDocketCase Assigned to Judge Trevor N. McFadden. (znmg) (Entered: 08/26/2022)
[-] Read LessDocket(#2) ERRATA COMPLAINT by PENGCHENG SI. (Attachments: #1 Civil Cover Sheet, #2 Exhibit)(Si, Pengcheng) (Attachment 1 replaced on 8/26/2022) (znmg). (Entered: 08/24/2022)
[-] Read LessDocketNOTICE OF ERROR re #1 Complaint; emailed to ssi@dwslawgroup.com, cc'd 0 associated attorneys -- The PDF file you docketed contained errors: 1. Missing/incorrect summonses. Please submit using the event Request for Summons to issue., 2. COMPLIANCE DEADLINE is by close of business today. This case will not proceed any further until all errors are satisfied. (znmg, ) (Entered: 08/24/2022)
[-] Read LessDocketNOTICE OF ERROR re #1 Complaint and Civil Cover Sheet; emailed to ssi@dwslawgroup.com, cc'd 0 associated attorneys -- The PDF file you docketed contained errors: 1. No signature. Please file the signed document using the event Errata. All filings must have an original signature or '/s/ Attorney Name' to represent an electronic signature of the filer., 2. Civil Cover Sheet, section IV: 2 nature of suits were selected. Please choose one and refile., 3. COMPLIANCE DEADLINE is by close of business today. This case will not proceed any further until all errors are satisfied. (znmg, ) (Entered: 08/24/2022)
[-] Read LessDocket(#1) COMPLAINT against All Defendants with Jury Demand ( Filing fee $ 402 receipt number ADCDC-9463010) filed by SI PENGCHENG. (Attachments: #1 Civil Cover Sheet, #2 Exhibit)(Si, Pengcheng) Modified on 8/24/2022 to edit docket text (znmg). (Entered: 08/23/2022)
[-] Read Less
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