Bed Bath & Beyond Shareholder Sues Over Short-Swing Profits

A venture capital company that owned 10% or more of Bed Bath & Beyond Inc.'s common stock and profited from trading the stock in a short time frame should disgorge its profits, a shareholder says in a new suit.

RC Ventures LLC sold its holdings just before Bed Bath & Beyond took steps to improve its liquidity by making a “dilutive” stock offering, Todd Augenbaum says. Other shareholders then suffered a “dramatic loss,” Augenbaum says in his complaint, filed Monday in the US District Court for the Southern District of New York.

Augenbaum is suing under a Securities Exchange Act ...