Formerly known as Bed Bath & Beyond, the retailer is pursuing legal action against Hudson Bay Capital Management and HBC Investments, seeking to recover more than $300 million in profits allegedly gained through insider trading shortly before the retailer declared Chapter 11 bankruptcy. The company filed for bankruptcy protection on April 23 this year and has already filed a $100 million claim against MSC.
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Bed Bath & Beyond claims that Hudson Bay's purchases of its equity securities before the bankruptcy were strategically timed to yield substantial profits, leaving the company bankrupt while Hudson Bay pocketed over $300 million. Additionally, the retailer alleges that Hudson Bay capitalised on the company's brief surge in 'meme stock' status driven by speculative interest on social media platforms.
Hudson Bay, however, denies these allegations, asserting that the claims are baseless and intended to deflect attention from the creditors' significant financial losses.
Source: www.retaildive.com