GameStop slides on report billionaire investor Ryan Cohen faces SEC probe

Ryan Cohen, the billionaire investors famous for a host of meme stock investments, including GameStop  (GME) - Get Free Report and the bankrupt Bed Bath & Beyond, is facing a Securities & Exchange Commission probe into some of his trades, according to media reports.

The Wall Street Journal said Cohen, who is also the founder of pet supplies company Chew.com  (CHWY) - Get Free Report and the current chairman of GameStop, was asked by the SEC to provide information about both his trades and communications with senior executives at Bed Bath & Beyond.

Cohen took a 10% stake in the struggling home retailer in March of 2022, through his RC Ventures investment company, only months after pushing the group to put three of this allies on the company board. 

He also advocated for the retailer to look at several strategic alternatives, including sale of its lucrative buybuy Baby division, and the ouster of CEO Mark Tritton, who left the group in June of the same year.

Cohen's RC Ventures sold all of hits 9.45 million shares in Bed, Bath & Beyond in mid August, netting around $60 million in the process. 

The timing of the sale raised questions among some investors, and speculation it could draw interest from the SEC, given Cohen's proximity to management talks with what the company had described as "external financial advisors and lenders on strengthening our balance sheet".

Bed Bath & Beyond ultimately filed for Chapter 11 Bankruptcy protection in April of this year. 

GameStop shares were marked 2.65% lower in pre-market trading to indicate an opening bell price of $18.39 each.

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