BED BATH & BEYOND (BBBY) Shareholder Derivative Action Settlement

IN RE BED BATH & BEYOND INC. STOCKHOLDER DERIVATIVE LITIGATION

On January 8, 2020, BBBY withdrew its FY 2019 guidance. BBBY also reported a 3Q2019 adjusted loss of earnings per diluted share of $0.38 and an 8.3% decline in comparable sales. BBBY explained that this performance “was impacted to some extent by self-inflicted issues, like poor inventory management.” Then, on February 11, 2020, BBBY disclosed a “5.4% decline in comparable sales driven primarily by store traffic declines combined with inventory management issues,” which included “inventory within certain key categories in the [BBBY] assortment [that were] too low or out-of-stock during the period.” The Derivative Matters allege that the Individual Defendants breached their fiduciary duties by, inter alia: failing to exercise appropriate oversight over BBBY’s public statements, internal controls, and inventory management, ultimately resulting in reduced revenue and a decline in stock price; and publishing false and misleading statements regarding the same. The Federal Action also asserts claims in connection with BBBY’s repurchases of its stock at allegedly inflated prices.