Overstock.com files $3.5 billion lawsuit |
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Fri, 02 Feb 2007 23:14
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SALT LAKE CITY (AFX) - Discount Web retailer Overstock.com Inc. said Friday it filed a lawsuit seeking damages of $3.48 billion against prime brokers including Morgan Stanley, Goldman Sachs, Bear Stearns, Citigroup and others.The company said its lawsuit alleges the brokers participated in a 'massive, illegal stock market manipulation scheme,' and their actions caused 'dramatic distortions' in the trading of Overstock's shares, causing the price to drop.The lawsuit was filed in the Superior Court of California in San Francisco, and alleges violations of California securities laws, common law and California's Unfair Business Practices Act, Overstock said.'I believe that this conduct is harming our company and our shareholders deeply, and that investors have been failed by those who have a duty protect them,' said Patrick Byrne, chairman and chief executive, in a statement.'The best way to address and solve the problem is to get it in front of a jury of 12 Californians,' he added.The lawsuit was filed against Morgan Stanley & Co., Goldman Sachs & Co., Bear Stearns Cos., Bank of America Securities LLC, Bank of New York, Citigroup Inc., Credit Suisse (USA) Inc., Deutsche Bank Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Inc., UBS Financial Services Inc., and others.Overstock's shares closed up 51 cents, or 3.5 percent, at $15.11 on the Nasdaq. In the past 52 weeks, the stock has traded between $13.40 and $32.73.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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