Bed Bath And Beyond: U.S. Court Ruling: Former Bed Bath & Beyond Investor Faces Lawsuit Over Emoji-Filled Tweet
In a significant legal development, a U.S. court had allowed investors to proceed with a lawsuit against former Bed Bath & Beyond investor Ryan Cohen over a tweet that featured a seemingly encouraging emoji just before the company filed for bankruptcy earlier this year.
On Thursday, Washington, D.C. District Judge Trevor McFadden ruled, stating that Cohen and his firm must address the fraud allegations put forth by the plaintiffs, including the claim that Cohen’s use of a happy moon emoji was misleading.
In 2022, Cohen made substantial investments in the struggling home goods firm and secured the appointment of three of his associates to the company’s board while sharing his ideas for turning the business around.
Following Cohen’s moves, discussions about Bed Bath & Beyond began to circulate on social media as his hundreds of thousands of followers took note.
The pivotal tweet was posted on August 12, 2022, in response to a CNBC report predicting that Bed Bath & Beyond’s stock would plummet to $1. Alongside a photo of a woman shopping at the store, Cohen added the caption, “At least her cart is full,” accompanied by a cheerful moon emoji.
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The tweet quickly ignited conversations on Reddit and Twitter throughout the day and the weekend.
Many investors interpreted Cohen’s use of the joyful moon emoji to signal his unwavering belief that Bed Bath & Beyond’s shares would skyrocket, earning the colloquial label of a “meme stock.”
Judge McFadden noted that meme stock investors perceive such symbols as indicating that the stock is set to take off.
Consequently, it is plausible that meme stock investors may have perceived Cohen’s tweet as an explicit call to action, prompting them to act on their assumptions about Bed Bath & Beyond.
Before the tweet, the company’s shares were valued at $10.63 on Friday morning.
However, by the close of Monday’s trading session, they had surged to $16, driven by a flurry of trading activities.
The court’s ruling sets a precedent for legal scrutiny of social media communications from prominent investors. It underscores the impact such messages can have on the volatile world of meme stocks.
Our Reader’s Queries
What happened to bed Bath & Beyond?
The renowned home goods store’s branding and name have been acquired by Overstock.com. Unfortunately, all physical stores of Bed Bath & Beyond have been shut down permanently.
Can I still buy online from Bed Bath and Beyond?
Although Bed Bath & Beyond’s physical stores have closed, customers can still access the brand through its revamped website and app. Overstock has acquired the company’s intellectual property and rebranded itself to Bed Bath & Beyond, with the aim of increasing sales, attracting new customers, and establishing itself as a leading home goods retailer. With this move, the brand is set to continue providing quality products and exceptional customer service to its loyal patrons.
Why is Bed Bath and Beyond closing?
According to him, the company’s inability to cater to the consumer’s needs was a major setback. The customers were looking for Bed Bath and Beyond to offer competitive pricing and a seamless multi-channel experience that allowed them to purchase online and pick up in-store. However, the company failed to adapt to these demands, resulting in a loss of customer satisfaction.
Does Bed Bath and Beyond still exist?
A once thriving chain with stores across the US and Canada, headquartered in Union, New Jersey, has unfortunately met its demise. The company was once a part of the prestigious Fortune 500 and Forbes Global 2000 lists. However, in April 2023, the chain filed for Chapter 11 bankruptcy and was forced to liquidate all of its remaining stores. The last store closed its doors on July 30, 2023.