NEW YORK--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), a national securities and consumer rights litigation firm, today announced that it has filed a class action lawsuit against Overstock.com, Inc. (“Overstock” or the “Company”) (NASDAQ:OSTK) and certain of its executives (collectively, “Defendants”).
The action, which was filed in the U.S. District Court for the District of Utah, asserts claims under Sections 10(b) and 20 of the Securities Exchange Act of 1934 (the “Exchange Act”), 15 U.S.C. §§78j(b) and 78t(a), and SEC Rule 10b-5 promulgated thereunder, 17 C.F.R. §240.10b-5, on behalf of investors who purchased or otherwise acquired Overstock common stock between August 3, 2017 and March 26, 2018, inclusive (the “Class Period”).
Overstock is an online retailer and purported advancer of blockchain technology. On December 18, 2017, Overstock announced that its Medici Ventures (“Medici”) business and tZERO trading system was engaging in a $250 million coin offering.
The complaint alleges that Defendants violated provisions of the Exchange Act by issuing false and misleading statements to investors, including in filings with the U.S. Securities and Exchange Commission (“SEC”). Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Overstock’s coin offering was highly problematic and potentially illegal; and (2) the Company’s Medici business was hemorrhaging money.
On March 1, 2018, Overstock announced that the Securities and Exchange Commission (“SEC”) had requested information about its initial coin offering, the Company’s stock fell 4.4% to $57.75 per share from the February 28, 2018 share price of $60.40.
Then, on March 15, 2018, the Company stated that “the investigation could result in a delay of the tZero security token offering, negative publicity for tZero or us, and may have a material adverse effect on us or on the current and future business ventures of tZero.” Overstock also disclosed that the SEC was conducting an examination of advisers at tZERO. Further, it was revealed that Medici had lost $22 million for 2017, despite the fact that Bitcoin prices increased by 1,375% during that time. On this news, the Company’s stock fell 5.1% from $48.20 to $45.70.
Approximately one week later, on March 26, 2018, Overstock announced that it planned to offer 4,000,000 common stock shares in an underwritten public offering. On this news, the Company’s stock fell approximately 15%.
If you wish to serve as lead plaintiff, you must move the Court no later 60 days from the date of this notice. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Joe Pettigrew of Scott+Scott at (844) 818-6982, or via email at jpettigrew@scott-scott.com.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.
