One of its investments was New York Community Bank, which at the time was struggling and had received a $1 billion equity injection from a group of investors that included HBC.

[2][3] In February 2023, HBC received attention from the media after it arranged a fundraising deal for Bed Bath & Beyond which at the time was on the verge of bankruptcy.

[2] On March 30, 2023, Bed Bath & Beyond terminated its deal with HBC and instead tried to sell up to $300 million of common stock in the open market with the offering led by B. Riley Financial.

[15][16] In May 2024, Bed Bath & Beyond sued HBC to recover over $300 million in trading profits from their deal to pay off its creditors such as Sixth Street Partners.

The lawsuit was filed under the short swing rule which was allegedly applicable to HBC as it was a shareholder that owned more than 10% of Bed Bath & Beyond's outstanding shares and therefore had to give any profits from short-term trading during a given six-month period to the company.

The lawsuit alleged HBC orchestrated the terms of the deal so it could acquire a large stake in it at a deep discount without having to disclose the ownership.

As a result, the purpose of the blockers were alleged to help HBC defendants sidestep the disclosure and disgorgement obligations of federal securities laws.