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Overstock.com Proceeds with Amended Complaint that Includes Racketeering Claim Against Goldman Sachs and Bank of America Subsidiary Merrill Lynch
Jan 27, 2011 (05:01 PM EST)
SALT LAKE CITY, Jan. 27, 2011 /PRNewswire/ -- Overstock.com, Inc. (Nasdaq: OSTK) today announced that it filed its amended complaint against defendants Goldman Sachs and Bank of America subsidiary Merrill Lynch. The amended complaint includes a claim under New Jersey's Racketeer Influenced and Corrupt Organizations (RICO) Act. Civil RICO claims carry the possibility of treble damages.
Overstock.com announced in December it had applied to the court to allow the RICO claim. That amended complaint has now been filed, and Goldman Sachs and Merrill Lynch have 30 days to answer or challenge the amended complaint.
Jonathan Johnson, President of Overstock.com, stated, "Goldman Sachs and Merrill Lynch and some of their market maker clients agreed to and created a scheme to effect the naked short selling in our securities in order to drive down the price of our stock to their mutual profit. It's nice that neither Goldman nor Merrill Lynch contested our motion. We are now working to assure our racketeering claims can come before a jury."
Patrick Byrne, Chairman and CEO of Overstock.com, added, "I am really going to enjoy watching Goldman Sachs try to justify its nefarious schemes to a jury box with 12 Americans in it."
The San Francisco action, first filed in February 2007, alleged prime broker defendants engaged in naked short selling and similar manipulative practices designed to profit from failing to deliver shares required to close trades, and that this resulted in downward pressure on Overstock.com's share price.
As part of the amending of the complaint, the court moved the trial date from September 12, 2011 to December 5, 2011.
Overstock.com, Inc. (short cut: O.CO) is a Savings Engine offering brand-name merchandise at discount prices. The company offers its customers an opportunity to shop for bargains conveniently, while offering its suppliers an alternative inventory distribution channel. Overstock.com, headquartered in Salt Lake City, is a publicly traded company listed on the NASDAQ Global Market System and can be found online at http://www.overstock.com and http://www.o.co. Overstock.com regularly posts information about the company and other related matters on its website under the heading "Investor Relations."
Overstock.com® is a registered trademark and O.co™ and Savings Engine™ are trademarks of Overstock.com, Inc.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, statements concerning the extent of expected damages, the success of amendment or any claim or outcome at trial. Our Form 10-K for the year ended December 31, 2009, our subsequent quarterly reports on Form 10-Q, or any amendments thereto, and our other subsequent filings with the Securities and Exchange Commission identify important factors that could cause our actual results to differ materially from those contained in our projections, estimates or forward-looking statements.
SOURCE Overstock.com, Inc.