Overstock.com Inc. (OSTK) Files $3.5 Billion Lawsuit
Discount Web retailer Overstock.com Inc. said Friday it filed a lawsuit seeking damages of $3.48 billion against prime brokers including Morgan Stanley, Goldman Sachs, Bear Stearns, Citigroup and others.
The company said its lawsuit alleges the brokers participated in a "massive, illegal stock market manipulation scheme," and their actions caused "dramatic distortions" in the trading of Overstock's shares, causing the price to drop.
The lawsuit was filed in the Superior Court of California in San Francisco, and alleges violations of California securities laws, common law and California's Unfair Business Practices Act, Overstock said.
"I believe that this conduct is harming our company and our shareholders deeply, and that investors have been failed by those who have a duty protect them," said Patrick Byrne, chairman and chief executive, in a statement.
The company said its lawsuit alleges the brokers participated in a "massive, illegal stock market manipulation scheme," and their actions caused "dramatic distortions" in the trading of Overstock's shares, causing the price to drop.
The lawsuit was filed in the Superior Court of California in San Francisco, and alleges violations of California securities laws, common law and California's Unfair Business Practices Act, Overstock said.
"I believe that this conduct is harming our company and our shareholders deeply, and that investors have been failed by those who have a duty protect them," said Patrick Byrne, chairman and chief executive, in a statement.
Labels: BAC, BK, BSC, C, GS, MER, MS, OSTK, Overstock.com Inc., UBS
posted by Stock Administrator @ 6:13 PM
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