Legal
Former Bed Bath & Beyond Sues Hudson Bay for $300 Million in Trading Profits
- Bankrupt retailer sues to seize ‘short-swing’ profits
- Hudson Bay set ‘illusory’ terms of 2023 financing, suit says
Customers wait to enter a Bed Bath & Beyond store in Pleasant Hill, Calif., last year.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
The former Bed Bath & Beyond Inc., seeking to generate cash for its creditors, sued to recover more than $300 million in trading profits from Hudson Bay Capital Management, the hedge fund at the center of a last-ditch financing plan that failed to prevent the retailer’s collapse.
The former retailer filed a lawsuit last week claiming that, behind the scenes, Hudson Bay orchestrated the terms for a February 2023 offering so it could acquire a huge, cut-rate stake in Bed Bath without having to disclose the ownership under a little-known rule for corporate insiders.