Gustavo Arnal is confirmed to be the man who plunged to his death from a New York City skyscraper amid allegations that he and other shareholders artificially inflated the company’s value.
- Sep 5, 2022
AceShowbiz - Bed Bath & Beyond CFO died after falling from a New York City skyscraper. Gustavo Arnal has been confirmed to be the man who jumped to his death from the 18th floor of the Jenga Tower in Manhattan on Friday afternoon, September 2. He was 52.
The NYPD said in a statement on Sunday that Arnal was found unconscious and unresponsive outside his luxury 57-story apartment. The New York City medical examiner's office said on Sunday night the executive died from multiple blunt trauma and that he had taken his own life.
The law enforcement source told CNN that Arnal's wife witnessed him jump. The source said while no suicide note was found, no foul play is suspected.
A spokesperson for the company said in response to the death of Arnal, "The entire Bed Bath & Beyond Inc. organization is profoundly saddened by this shocking loss." In a separate statement, the Independent Chair of Bed Bath & Beyond's Board of Directors Harriet Edelman said, "I wish to extend our sincerest condolences to Gustavo's family. Gustavo will be remembered by all he worked with for his leadership, talent and stewardship of our Company."
Edelman said Arnal was "instrumental in guiding the organization throughout the coronavirus pandemic, transforming the company's financial foundation and building a strong and talented team. He was also an esteemed colleague in the financial community."
"I am proud to have been his colleague, and he will be truly missed by all of us at Bed Bath & Beyond and everyone who had the pleasure of knowing him," he added. "Our focus is on supporting his family and his team and our thoughts are with them during this sad and difficult time. Please join us in respecting the family's privacy."
Arnal was named as a defendant in a class action lawsuit accusing him, GameStop Chairman Ryan Cohen and other shareholders of artificially inflating the company's value in a "pump and dump" scheme. According to the lawsuit, Cohen approached Arnal about his plan to accumulate shares of BBBY and assume command of the company's publicly available shares.
"With control over a significant portion of the public float, Cohen would essentially act as a price support for the stock while Gustavo would act in a similar capacity by controlling the sale of shares by Insiders," the lawsuit says. "Under this arrangement, defendants would profit handsomely from the rise in price and could coordinate their selling of shares to optimize their returns."
The lawsuit was filed on August 23 in the United States District Court for the District of Columbia. Since joining Bed Bath, Arnal made several purchases and sales of company stock. Last month, he sold more than 55,000 shares at prices ranging from $20 per share to $29.95 per share, for a total $1.23 million.
BBBY is taking a major financial hit, with the company's stock down 43% this year and about 90% from its all-time high. Last week, the company announced it was slashing its workforce by 20% via layoffs in addition to closing 150 locations.
