Overstock.com director leaves over suit |
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Fri, 23 Feb 2007 20:42
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NEW YORK (AP) - Online retailer Overstock.com Inc. said Friday John A. Fisher resigned from the board of directors, possibly over a disagreement with the company to sue several brokerage firms for $3.48 billion.Fisher's resignation is effective immediately, according to a Securities and Exchange Commission filing. He was a member of the audit committee and compensation committee. The board no longer has a majority of independent directors and the company said it will take prompt action to rectify the situation.'The company believes that the reason for Mr. Fisher's resignation was his disagreement with the company's pursuit of litigation it has filed in California against several prominent prime brokerage firms,' Overstock.com said in the SEC filing.Earlier this month, the company said it filed a lawsuit against powerhouses Morgan Stanley & Co., Goldman Sachs & Co., Bear Stearns & Co. and many others in the Superior Court of California in San Francisco. The lawsuit seeks $3.48 billion in damages and alleges the defendants 'participated in a massive, illegal stock market manipulation scheme and that the defendants had no intention of covering such orders with borrowed stock, as they are required to do, causing what are referred to as 'fails to deliver.''A company press release date Feb. 2 also goes on to say the 'lawsuit alleges that the defendants' actions caused and continue to cause dramatic distortions with regard to the nature and amount of trading in the company's stock which have caused the share price of the company's stock to dramatically drop.'Shares of Overstock.com fell 1 cent to $19.01 on the Nasdaq Stock Market in afternoon trading.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Overstock.com files $3.5 billion lawsuit 