Shareholder Alert: Robbins LLP Reminds Investors Overstock.com, Inc. (OSTK) Sued for Misleading Shareholders
November 26 2019 - 2:16PM
Business Wire
Shareholder rights law firm Robbins LLP reminds investors that a
purchaser of Overstock.com, Inc. (NASDAQ: OSTK) filed a class
action complaint for alleged violations of the Securities Exchange
Act of 1934 between May 9, 2019 and November 11, 2019.
Overstock.com operates as an online retailer in the United States
and Internationally.
If you suffered a loss as a result of Overstock's misconduct,
click here.
Overstock.com, Inc. (OSTK) Accused of Misleading
Shareholders
According to the complaint, in May 2019, Overstock touted a
return to profitability after an extended period of losing money
and raised its year-end guidance by 50%. Meanwhile, Overstock
launched its cryptocurrency project tZERO, which cost shareholders
$100 million. Throughout the relevant period, Overstock issued a
series of press releases and statements that promoted its
transition to the cryptocurrency exchange service provider and the
benefits it would provide investors. However, Overstock failed to
disclose that tZERO had actually been designed to create a short
squeeze by offering a digital token dividend that would not be
registered and could not be resold for at least six months,
thwarting any short selling. Before the market learned of
Overstock's scheme, its CEO liquidated over $102 million of his own
Overstock shares. Finally, on September 22, 2019, investors learned
the SEC would not allow Overstock to issue locked-up crypto
dividends and that the Company was lowering guidance to break-even
EBITDA for the year. Following this news, Overstock shares
experienced the largest stock drop in the Company's history. Shares
of Overstock.com currently trade at around $7.80, a decline of 71%
from the class period high of $26.89.
Overstock.com, Inc. (OSTK) Shareholders Have Legal
Options
Contact us to learn more: Leo Kandinov (800) 350-6003
lkandinov@robbinsllp.com Shareholder Information Form
Robbins LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action
lawsuits, and has helped its clients realize more than $1 billion
of value for themselves and the companies in which they have
invested. Click here to receive free alerts from Stock Watch when
companies engage in wrongdoing.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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Leo Kandinov Robbins LLP 5040 Shoreham Place San Diego, CA 92122
lkandinov@robbinsllp.com (619) 525-3990 or Toll Free (800) 350-6003
www.robbinsllp.com
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