The Securities and Exchange Commission reportedly is probing GameStop Chairman Ryan Cohen related to his abrupt sale of a big stake in Bed Bath & Beyond shares.
GME stock fell solidly Friday.
The SEC is seeking information from Cohen regarding the trades and his communications with directors and officers at the now-defunct housewares retailer, The Wall Street Journal reported Thursday night. It's also requesting information from current and former Bed Bath & Beyond boar members.
Cohen, who founded online pet store Chewy and took control of GameStop in 2021, triggering the meme stock craze.
In March 2022, Cohen disclosed taking a big stake in Bed Bath & Beyond and pushed for changes. In August 2022, he abruptly sold his 11.8% stake, days after tweeting positively about the retailer.
The billionaire Cohen netted a $60 million profit.
Bed Bath & Beyond stock, one of the original meme stocks, skyrocketed on Cohen's bullish tweets, then plunged after his sale, quickly erasing the gains and continuing a sharp sell-off.
Bed Bath & Beyond now trades as BBBYQ as an over-the-counter stock.
Shares fell 6.25% to 17.71 on Friday not far from two-year lows.
GameStop stock peaked at 120.75 in July 2021.
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