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.