LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”), a national investors rights law firm, announces that a class action lawsuit has been filed on behalf of investors that acquired Overstock.com, Inc. (“Overstock” or the “Company”) (NASDAQ: OSTK) securities between May 9, 2019, and September 23, 2019, inclusive (the “Class Period”). Overstock investors have until November 26, 2019, to file a lead plaintiff motion.
If you are a shareholder who suffered a loss and wish to participate, to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact attorney Brian Brooks at (212) 682-5340, Toll-Free at (888) 773-9224, or by email to firstname.lastname@example.org, or visit our website at www.glancylaw.com.
The class action complaint, captioned David Punturieri v. Overstock.com, et al., No. 2:19-cv-0850 (D. Utah), alleges, among other things, that on September 16, 2019, it was revealed that the Company’s tZERO crypto currency dividend, rather than a legitimate profit-maximizing endeavor, was in fact part of a scheme to create a “short squeeze” and thereby artificially inflate the price of Overstock shares.
On this news, the Company’s share price fell from just below $25.00 per share on September 13, 2019, to a close of $19.75, a decline of over 20%.
As further details were uncovered on September 17, 2019, the Company’s share price fell further to $16.20 per share, a one day decline of more than 17%.
Additional reporting and Company disclosures ultimately revealed, as alleged in the complaint, that throughout the Class Period Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors : (1) that Overstock.com would not be able to bankroll the launch of its tZERO crypto currency with earnings or cash flow from its Retail Division operations and that whatever minimal improvements Defendants had made by cutting costs and manufacturing earnings, could not be continued long enough to create positive EBITDA or cash from operations essential to bankroll its crypto currency operations; (2) that Defendants planned to offer the Company’s tZERO Preferred Share Dividend as a means to squeeze short sellers out of Overstock.com, and to block them from holding legitimate positions in the Company; (3) that it was foreseeable that the SEC or market participants would act to prevent the short squeeze; (4) that Overstock.com did not have adequate systems of internal operational or financial controls to ensure that Overstock.com’s quarterly reports filed with the SEC were true, accurate, or reliable; (5) that as a result of the foregoing, throughout the Class Period the Company’s quarterly reports filed with the SEC were not prepared in accordance with GAAP and SEC rules; and (6) that throughout the Class Period the Defendants had no reasonable basis to claim that Overstock.com was operating according to plan, or that Overstock.com could attain the guidance predicted by Defendants.
If you purchased Overstock securities during the Class Period, you may move the Court no later than November 26, 2019, to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact attorney Brian Brooks of GPM, 230 Park Avenue, Suite 530, New York, New York 10169 at (212) 682-5340, Toll-Free at (888) 773-9224, or by email to email@example.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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