As a seasoned investor and follower of GameStop’s dynamic journey, I find myself both intrigued and slightly amused by the recent turn of events involving Ryan Cohen. It’s not every day that a CEO of such prominence finds himself on the receiving end of an almost $1 million fine from the FTC.
The CEO of GameStop (GME), Ryan Cohen, was found to have breached the Hart-Scott-Rodino Act by not submitting required paperwork prior to purchasing Wells Fargo & Company shares. As a result, he was fined approximately $1 million by the Federal Trade Commission (FTC).
On September 18, 2024, the Federal Trade Commission imposed a $985,320 penalty on GameStop (GME) CEO Ryan Cohen. This fine was due to his failure to submit an HSR form before completing his acquisition of 562,000 Wells Fargo voting securities.
According to the Hart-Scott-Rodino Act (HSR), businesses and individuals need to disclose significant transactions such as buying securities. This reporting enables regulatory bodies to examine these matters over a 30-day period and request further details if necessary. When Cohen submitted the rectifying document, the fine for HSR violation was $43,792 per day.
The FTC’s statement continues, explaining that Cohen’s purchase of these shares did not qualify for the Investment-Only Exemption. Instead, by buying these voting stocks, it appears that Cohen aimed to impact the company’s management, as suggested in his emails where he argued for a board position.
In relation to GameStop, they’ve just launched Retro branches focusing on vintage gaming equipment and titles. Interestingly, they managed to surpass estimated EPS despite lower-than-anticipated sales in their Q2 2024 financial statement.
Make sure to check out our pages dedicated to Ryan Cohen, our GameStop CEO’s latest activities, and our GME page for recent financial reports.
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2024-09-19 03:27