Hudson Bay Wins Dismissal of Bed Bath Trading Gains Lawsuit (1)

Hudson Bay Capital Management won dismissal of a lawsuit by the former Bed Bath & Beyond Inc. alleging the hedge fund wrongly sidestepped stock ownership rules during the retailer’s downward spiral.

The lawsuit — filed in May 2024 — sought to recover more than $300 million in trading profits from Hudson Bay. It alleged the fund violated a law requiring executives and outside investors with stakes exceeding 10% to surrender short-term gains.

The dispute centered on a 2023 offering involving derivatives that helped Bed Bath raise money when it was desperate for cash, according to court filings. The complaint ...