GameStop (GME) CEO Ryan Cohen fined $985,320 penalty in FTC antitrust law violation settlement
Cohen failed to file a HSR form and wait before completing the acquisition of 562,000 Wells Fargo shares.
GameStop (GME) CEO Ryan Cohen violated the Hart-Scott-Rodino Act after failing to file the proper forms before completing his acquisition of Wells Fargo & Company shares. This has led to Cohen receiving an almost $1 million penalty from the FTC.
Source: FTC
On Wednesday, September 18, 2024, the Federal Trade Commission announced that GameStop (GME) CEO Ryan Cohen must pay $985,320 in a civil penalty. This fine is in relation to his failing to file a HSR form before finalizing his acquisition of 562,000 Wells Fargo voting securities.
“The HSR Act requires companies and individuals to report large transactions, including securities acquisitions,” The FTC explains. This reporting allows the agencies 30 days to conduct an investigation and even demand additional information. At the time when Cohen made the corrective filing, the penalty for a HSR violation was $43,792 per day.
The notice by the FTC goes on to state that Cohen’s acquisition of these shares was not exempt under the Investment-Only Exemption. By acquiring these voting securities, Cohen intended to influence the business, as is evidenced in his emails when advocating for a board seat.
On the GameStop front, the company has recently opened GameStop Retro locations that specialize in classic hardware and games. The company was also able to beat EPS expectations on lighter-than-expected revenue in its Q2 2024 earnings report.
Be sure to look over our Ryan Cohen page for more information about what the GameStop CEO has been up to as well as our GME page for more earnings reports.
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