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Bed Bath & Beyond boss was named in lawsuit before his skyscraper death

Bed Bath & Beyond boss was named in lawsuit before his skyscraper death

The CFO was named in lawsuit alongside GameStop chairman Ryan Cohen

The CFO of Bed Bath & Beyond was named in a lawsuit before his skyscraper death.

Gustavo Arnal fell to his death from the 18th floor of a New York City apartment building on Friday (2 September).

It has since emerged that his death came two weeks before he was named in a lawsuit, which accuses him of fraud.

The 52-year-old is cited in the suit alongside GameStop chairman Ryan Cohen, with it stating that the pair took part in a 'fraudulent scheme to artificially inflate the price of Bed Bath & Beyond's publicly traded stock'.

The suit, which was filed on August 23, said: "The defendants, knowing that the information they disclosed was false, took advantage of the inflated stock price and used fraudulent and misleading SEC filings to sell all their [Bed Bath & Beyond] shares and options at artificially inflated prices to unsuspecting and innocent public investors and then retained control of the profits."

Officers arrived to the skyscraper, nicknamed the 'Jenga Building', to find Arnal unresponsive.
Creative Commons

The lawsuit claimed that the 'pump and dumb' scheme began in March 2022, adding: "Under this arrangement, defendants would profit handsomely from the rise in price and could coordinate their selling of shares to optimise their returns.

"Cohen has historically employed pump and dump schemes to raise much needed capital and has ignited several meme stocks to jaw-dropping heights."

Meanwhile, the NYPD said in a statement that they were still investigating Arnal's death.

"On Friday, September 2, 2022 at approximately 12:30 hours police responded to a 911 call of unconscious person in the vicinity Leonard Street and West Broadway within the confines of the 1 Precinct," they said.

"Upon arrival officers observed an unconscious and unresponsive 52-year-old male, who appeared to suffer from injuries indicative from a fall from an elevated position. 

"EMS responded to the scene and pronounced the victim deceased on scene. The New York City Medical Examiner's Office will determine the cause of death and the investigation remains ongoing.

"The deceased has been identified as follows: Arnal, Gustavo, 52-year-old male, 56 Leonard Street, New York, NY."

Gustavo Arnal passed away on Friday.

When Arnal joined the company in 2020, a spokesperson said that they were 'bringing in world class talent to offer new perspectives, expertise and experience as we rebuild our business'.

They added: "Gustavo exemplifies this and his experience delivering business transformation at other leading companies, his deep knowledge of the retail and consumer goods space, as well as his energy and drive will help accelerate our transformation plans."

UNILAD have contacted GameStop and Bed Bath & Beyond for comment.

If you have a story you want to tell, send it to UNILAD via [email protected]  

Featured Image Credit: Bed Bath & Beyond/Stacy Walsh Rosenstock/Alamy Stock Photo

Topics: US News, New York, Business