Overstock.com, Inc. (NASDAQ: OSTK) Investor Securities Class Action Lawsuit 09/27/2019

If you purchased a significant amount of shares of Overstock.com, Inc. (NASDAQ: OSTK) between May 9, 2019, and September 23, 2019, and / or if you purchased any Overstock.com, Inc. (NASDAQ: OSTK shares prior to May 2019 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: November 26, 2019. NASDAQ: OSTK investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Overstock.com
Case Name: 
Eldorado Resorts Shareholder Class Action Lawsuit 09/27/2019
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: OSTK
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
09/27/2019
Class Period Begin: 
05/09/2019
Class Period End: 
09/23/2019
Court of Filing: 
U.S. District Court for the District of Utah
Deadline To File for Lead: 
11/26/2019
Summary: 

An investor in shares of Overstock.com, Inc. (NASDAQ: OSTK) filed a lawsuit in the U.S. District Court for the District of Utah over alleged violations of Federal Securities Laws by Overstock.com, Inc. in connection with certain allegedly false and misleading statements made between May 9, 2019, and September 23, 2019.

Midvale, UT based Overstock.com, Inc. operates as an online retailer in the United States and internationally. It operates through Retail and tZERO segments. Overstock.com, Inc. reported that its annual Total Revenue rose from over $1.74 billion in 2017 to over $1.82 billion in 2018 and that its Net Loss declined from $109.87 million in 2017 to $206.07 million in 2018.

On September 23, 2019, following many months of media reports on the bizarre behavior of founder Patrick Byrne, who resigned as CEO in August 2019 and subsequently sold over $91.98 million of stock in Overstock.com, Inc. in a three-day sales binge, Overstock.com, Inc. disclosed the sudden and unexpected departure of CFO Iverson the week prior, and that Overstock.com, Inc. would lower guidance to break even EBITDA for the year, eliminating the projected $17.5 million that Overstock.com, Inc. had recently provided and which was critical to support the launch of its tZERO service.

According to the complaint the plaintiff alleges on behalf of purchasers of Overstock.com, Inc. (NASDAQ: OSTK) common shares between May 9, 2019, and September 23, 2019, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that the defendants issued a series of press releases and made statements in SEC filings and during Conference Calls for analysts and investors that promoted the Company’s transition to crypto currency exchange service provider, and extolled the benefits that this would purport to provide to investors, and that what defendants did not disclose, however, were the extreme risks and foreseeable volatility that was likely to result if and when defendants’ true intentions behind the tZERO Dividend Offering were ever discovered.

The plaintiff claims that the defendants were motivated to and did conceal the true operational and financial condition of Overstock.com, Inc, and materially misrepresented and failed to disclose the conditions that were adversely affecting the Company between May 9, 2019, and September 23, 2019, because it enabled them to deceive the investing public regarding Overstock’s business, operations, management and the intrinsic value of Overstock common stock, because it enabled defendants to artificially inflate the price of Overstock common stock, because it enabled Patrick Byrne to sell over $100 million of his privately held Overstock shares while in possession of material adverse non-public information about the Company, because it enabled defendants to sell additional shares of Overstock in the market to create a cash fund necessary to support its crypto projects (in the face of them being abandoned by investment partners), and because it caused Plaintiff and other investors to purchase Overstock common stock between May 9, 2019, and September 23, 2019, at artificially inflated prices.