ADVERTISEMENT

Investors sue Overstock over securities fraud

ADVERTISEMENT

Must Read

Bitcoin rises to $8,000 as Britain reaches a Brexit deal – Bitcoin News

Today marks a historic day as the European Union, and Britain reached a Brexit deal. Many experts and analysts...

BTC.com and Antpool co-discover the same block – Bitcoin Mining News

Bitcoin network initiated a rare event where two highly competitive pools co-discovered the same block. In the end, one...

Infamous Darknet website that sold credit cards gets hacked – Dark Web News

BrainsClub, a well known Darknet website, got a taste of its medicine as a hacker, stole the information from...
Malaki Braydon
Malaki Braydon
Braydon has been into the crypto and blockchain space from the past 7 years. Based in New York City, Braydon has completed his masters from Kingsborough Community College.

A federal lawsuit has accused Overstock.com, its ex-CEO Patric Byrne, and its CFO of fraud tied to a recent sale of $102 million in company stock. The firm reportedly veiled information from investors and the Securities and Exchange Commission. The lawsuit cites the disclosure of details as the company's way to prevent the short sellers from holding positions.

Overstock.com, the American internet retailer, has become the subject of a federal lawsuit. Stockholder Benjamin Ha had cited a 61-page complaint accusing the firm, its CEO Patric Byrne and CFO Gregory Iverson of making false, misleading, and “bizarre’ statements and concealing information to inflate Overstock’s share prices artificially before a tide of sales that ended in mid-September.

The suit comes after six weeks after Byrne resigned as the CEO and details the plan of the retailing firm to offer their tZERO Preferred Share Dividend, and employ its usage to squeeze out the short sellers from Overstock and prevent them from holding any positions in the firm. Iverson, the other defendant, also abandoned his position on September 17 without a public explanation.

Since the filing of the litigation, numerous US law firms representing Overstock investors, including The Law Offices of Vincent Wong, Zhang Investor Law, Rosen Law Firm, and more, have joined the case to apply for the lead applicant. With November 26 being the last date for lead plaintiff application, we may see more firms joining the suit.

Disclaimer: Coinnounce's views are not necessarily reflected in the articles published, and they are the sole representation of the author's opinions. Article's information should not be taken as investment advice. Risks are involved in cryptocurrency investments and trading. Readers are urged to carry out extensive research before making a decision.

Leave a reply

Please enter your comment!
Please enter your name here

Latest News

Bitcoin rises to $8,000 as Britain reaches a Brexit deal – Bitcoin News

Today marks a historic day as the European Union, and Britain reached a Brexit deal. Many experts and analysts...

More Articles Like This