Ryan Cohen fires back at 'overpriced consultants' firm that is suing GameStop
The Boston Consulting Group has filed a lawsuit aiming to recover an alleged $30 million USD in unpaid debt since 2019.
GameStop’s rise out of a near bankrupt state in 2020 has been one of the most interesting and wild rollercoaster stories in the investment community. The company was almost down and out before a major short squeeze skyrocketed the stock from single digit USD value up to over $340 per share. Unfortunately, it seems the past is still lingering like a stink on the trail of the GameStop company’s transformation. Recently, GameStop Chair of the Board Ryan Cohen spoke out against a $30 million lawsuit in unpaid debts from a firm that was allegedly brought in to raise the company out of crisis.
Ryan Cohen addressed the $30 million lawsuit from Boston Consulting Group via his personal Twitter on March 24, 2022. The lawsuit, as reported by financial news website PYMNTS, alleges that Boston Consulting Group was hired by GameStop in 2019 to aid the company in rising out of its dismal state throughout that year and most of the following 2020. BCG claims that GameStop owes around $30 million USD in unpaid debt and bills for its work and assistance.
The overpriced consultants at BCG are picking a fight with the wrong company…🥊 @BCG— Ryan Cohen (@ryancohen) March 24, 2022
Ryan Cohen’s recent tweet in response suggests GameStop is prepared to fight the lawsuit. Cohen has been a key figure in the transformation of GameStop since its stock value skyrocketed thanks to the craze around the stock, coordinated by day trading and the likes of subreddits like r/WallStreetBets. After becoming GameStop’s new Chairman of the Board, Cohen and GameStop worked quickly to replace key executives and pivot the company more towards ecommerce and online sales. Despite some misses in its recent financial quarter, Cohen and further GameStop executives remain adamant that the company is positively transforming to become far more sustainable for the foreseeable future.
Cohen's RC Ventures firm recently invested in 100,000 more shares of GameStop, signaling his continued belief in the company. It would appear that Cohen and GameStop aren’t about to let Boston Consulting Group get in the way of that.
With the lawsuit filed and Boston Consulting Group set to go to court with GameStop, it will be interesting to see how this financial legal battle shakes out. Stay tuned as we continue to follow this story for further updates.
TJ Denzer posted a new article, Ryan Cohen fires back at 'overpriced consultants' firm that is suing GameStop