RC Ventures Can Keep Short Swing Profits From Bed Bath & Beyond

Investment firm RC Ventures LLC and its manager Ryan Cohen don’t have to disgorge the substantial short swing profits they made selling Bed Bath & Beyond Inc. stock before the company filed for bankruptcy protection, a federal court said.

Stockholders Todd Augenbaum and Judith Cohen’s suit under Section 16(b) of the Securities Exchange Act was dismissed as moot by Judge Dale E. Ho of the US District Court for the Southern District of New York. The plaintiffs alleged that during the six-month period recognized by Section 16(b), the defendants owned 10% of BBBY common stock and/or were BBBY directors ...