GameStop CEO Ryan Cohen has agreed to a settlement involving a nearly $1 million penalty imposed by the U.S. Federal Trade Commission (FTC). This action arises from Cohen's failure to report his acquisition of over $100 million in Wells Fargo voting shares, a requirement under federal securities laws.
According to the FTC, Cohen's failure to disclose this significant stock purchase, which took place in 2018, constitutes a violation of regulations designed to maintain transparency in the financial markets. The agency highlighted that Cohen was not merely a passive investor; he engaged in communications with Wells Fargo's management regarding strategic improvements and sought to obtain a seat on the bank's board.
Despite not reporting the transaction at the time, Cohen eventually fulfilled his reporting obligations in 2021. The FTC's findings underscore the importance of compliance with disclosure requirements, especially for individuals in influential corporate positions.
Cohen’s attorney has not yet responded to requests for comment regarding the settlement. This case serves as a reminder of the regulatory scrutiny faced by executives in publicly traded companies, particularly in matters of stock ownership and corporate governance.
According to the FTC, Cohen's failure to disclose this significant stock purchase, which took place in 2018, constitutes a violation of regulations designed to maintain transparency in the financial markets. The agency highlighted that Cohen was not merely a passive investor; he engaged in communications with Wells Fargo's management regarding strategic improvements and sought to obtain a seat on the bank's board.
Despite not reporting the transaction at the time, Cohen eventually fulfilled his reporting obligations in 2021. The FTC's findings underscore the importance of compliance with disclosure requirements, especially for individuals in influential corporate positions.
Cohen’s attorney has not yet responded to requests for comment regarding the settlement. This case serves as a reminder of the regulatory scrutiny faced by executives in publicly traded companies, particularly in matters of stock ownership and corporate governance.