Shepherd, Finkelman, Miller & Shah, LLP (“SFMS”) announces that a class action lawsuit has been filed in the United States District Court for the District of Utah (Civil Action No. 19-00709) against Overstock.com Inc. (“Overstock” or the “Company”) (Nasdaq: OSTK) and certain of its officers and directors. The case seeks remedies under the Securities Exchange Act of 1934 and is brought on behalf of a class consisting of all persons or entities that acquired Overstock securities between May 9, 2019 and September 23, 2019, inclusive (the “Class Period”).
Overstock is an online retailer of furniture, home décor and other products which recently pivoted to include the development and commercialization of financial applications of blockchain technologies through its security token platform, tZERO.
According to the Complaint, defendants throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that:
(1) the Company was unable to support the launch of its tZERO cryptocurrency with earnings or cash flow from its retail operations; (2) Overstock planned to offer a tZERO Preferred Share Dividend, which would not be registered and could not be resold for at least six months, with the intent to squeeze out short sellers of the Company’s stock; (3) the likelihood that the Company would be able to successfully execute the short squeeze would foreseeably motivate the SEC, and even market participants, to intervene; (4) Overstock’s internal controls on operations and financial reporting were inadequate; and (5) accordingly, the Company’s quarterly reports did not adhere to GAAP ad SEC rules.
The Lead Plaintiff Deadline for this case is November 26, 2019. To qualify to be a lead plaintiff, courts generally require a showing that the class member has the “largest financial interest” in the litigation.
The legal team at SFMS has significant experience litigating securities matters. If you have any questions regarding this subject or this posting, please contact John Roberts (firstname.lastname@example.org) or Alec Berin (email@example.com). We can also be reached toll-free at 866-540-5505.
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