Kessler Topaz Meltzer Check LLP 2019 - Stock Fraud Class Action Filed Against Overstock.com, Inc. - OSTK

The law firm of Kessler Topaz Meltzer & Check, LLP alerts investors that a corporate securities fraud lawsuit has been filed against Overstock.com, Inc. (Nasdaq: OSTK) ("Overstock") on behalf of those purchased or acquired Overstock securities between May 9, 2019 and September 23, 2019, inclusive (the "Class Period").

According to the complaint, Overstock is an online retailer of furniture, home décor and other products that has recently shifted its focus to include developing and marketing financial applications of blockchain digital currency technologies through the its tZERO platform.

The Class Period begins on May 9, 2019, when Defendants released a statement announcing alleged results for the first quarter of 2019. The statement announced that after spending $ 100 million in shareholder funds in the past over four years, Overstock's tZERO product was ready for launch, and critically, Overstock's retail department was working so well that EBITDA's guidance could be increased by 50%. As the defendants explained in the statement, the return of Overstock Retail to a positive cash flow was essential to support the launch of tZERO.

Kessler Topaz Meltzer Check LLP 2019

According to the complaint, on Sunday, September 22, 2019, MarketWatch released a report titled: "The Overstock founder tried to squeeze sellers in short and then ran out when the SEC took vigorous action." The report stated, in part, "one of Patrick Byrne's last acts on Overstock.com Inc. appears to have forced a small squeeze that justified the Securities and Exchange Commission's attention, and the sale of its entire stake. for the past three days it now raises doubts as to whether it tried to manipulate the market. " The report also noted the implications of the unusual timing and the amount of shares sold by Byrne. The report concluded, "Even if Byrne escapes charges of market manipulation or use of insider information, this is still a horrifying look - amid an ongoing investigation by the SEC's enforcement division at Overstock's tZERO platform and its offering of tokens, the chief executive resigned and sold all of his stake while apparently hiding in an unidentified Asian country, with plans to invest the money in such a way that the North American authorities Americans can't get it. "

On September 23, 2019, Overstock was late reporting that its chief financial officer, Defendant Gregory Iverson, had left Overstock in an unscheduled game a week earlier, on September 17, 2019, and that Overstock would reduce its orientation to to EBITDA even during the year, eliminating the $ 17,500,000 projected that Overstock had recently led to wait. Following this news, the Overstock stock price dropped below $ 15.00 per share on September 20, 2019, the day of trading prior to September 23, 2019, to $ 11.19 per share.

The complaint alleges that throughout the Class period, defendants made false and / or misleading statements and / or did not disclose that: (i) It was not true that Overstock could support the launch of their digital currency tZERO with profit or cash flow from its retail operations; (Ii) the predictable likelihood that Overstock's ability to achieve its intended short-term pressure will be emboldened by the SEC or even market participants, such as major stockbrokers, to take action to prevent such market manipulation; (Iii) It was also not true that Overstock contained adequate systems of internal operational or financial controls; and (iv) the defendants had no reasonable basis to claim that Overstock was operating in accordance with the plan, or that Overstock could obtain counseled and / or supported by the defendants.

Investors in excess stock who wish to discuss this collective securities fraud lawsuit and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (James Maro, Jr., Esq. O Adrienne Bell, Esq.) At (844) 887-9500 (toll-free) or at info@ktmc.com.

Overstocked investors can request no later than November 26, 2019 to be nominated as Class Principal Representatives through Kessler Topaz Meltzer & Check or another attorney, or may choose not to. nothing and still be an absent member of the class. A lead plaintiff is a representative party acting on behalf of all members of the class in leading the litigation. To be named the lead complainant, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to participate in any recovery is not affected by your decision whether or not to serve as the lead plaintiff.

Kessler Topaz Meltzer & Check processes lawsuits in state and federal courts across the country, including securities fraud, breach of trust obligations, and other state and federal law violations. Kessler Topaz Meltzer & Check is a driving force behind corporate governance.