Hudson Bay Beats Bankrupted Bed Bath’s Insider-Trading Suit (1)

The company formerly known as Bed Bath & Beyond lost its bid to collect more than $310 million in alleged “short-swing” profits from a hedge fund which worked on a last-ditch financing arrangement that failed to save the retailer from demise.

Bed Bath, which traded under the ticker BBBY, didn’t sufficiently plead the investment fund and its manager were statutory insiders given “blockers” that capped their beneficial ownership of its common stock under a 10% threshold, Judge Mary Kay Vyskocil of the US District Court for the Southern District of New York said Tuesday.

Bed Bath, which changed its name ...