Hertz issued new stock when its stock started rising while it was in bankruptcy proceedings, with permission from the bankruptcy court, until the SEC told it to

Hertz issued new stock when its stock started rising while it was in bankruptcy proceedings, with permission from the bankruptcy court, until the SEC told it to stop (AFAIK, the SEC did not penalize it for the stock it had issued up to that point.) GameStop could not do this during its initial crazy ride, on account of being in a fiscal-year-end blackout period. Since then, it has said it may issue new stock. Any company making such an offering whould have to be frank and completely transparent about the risk, to avoid any hint of securities fraud, and I would not be surprised if the company would still be sued if the price subsequently fell. In Hertz's case, being sued would not be a problem. ViacomCBS claims to not have known that the run-up of its stock was driven by Archegos's speculation, and seems to have been harmed by the outcome. It had Goldman and Morgan Stanley leading the sale of its new issue, and it so happens that they were also prime brokers for Archgos, but bailed out fast enough to avoid big losses. Make of that what you will. I am just repeating here what Matt Levine has said on the topic.