Shortly after his blockbuster bid for eBay was shot down, GameStop CEO Ryan Cohen is facing a new fight—this time from one of his own shareholders. An investor has filed a lawsuit seeking to block a vote on Cohen’s proposed $35 billion compensation package, arguing that investors haven't been given enough information to understand exactly what they're being asked to approve.
According to Bloomberg, the lawsuit centers on disclosure concerns. The shareholder claims key details about the structure, valuation, and long-term consequences of the package were not adequately explained in materials distributed ahead of the vote. The suit seeks to halt or postpone the shareholder meeting until additional information is provided.
The challenge lands at a critical moment for Cohen, who has spent the last several years trying to reinvent GameStop from a struggling mall retailer into a modern, digitally focused business. Since taking over, the billionaire entrepreneur—best known for co-founding pet supply giant Chewy—has become a cult figure among retail investors who helped turn GameStop into the face of the 2021 meme-stock revolution.
A $35 billion compensation package would rank Cohen’s potential payout among the largest ever put before shareholders. Corporate governance experts have long argued that mega-pay plans require extensive disclosures so investors can determine whether executive rewards are truly tied to company performance. The lawsuit alleges that standard has not been met.
The legal battle comes on the heels of another headline-grabbing move by Cohen. Last month, he launched an unsolicited $56 billion bid to acquire eBay, pitching the deal as a way to create a retail and collectibles powerhouse. Cohen even pledged to run the combined company without taking a salary or bonus.
But eBay wasn't interested. Its board quickly rejected the proposal, calling it "neither credible nor attractive" and raising concerns about financing and leadership.
