ATB FRIDAY - 16:20 OSTK Overstock.com anounces lawsuit against prime brokers (15.11 +0.51)
Co announces that it has filed a lawsuit in the Superior Court of California, County of San Francisco against Morgan Stanley, Goldman Sachs, Bear Stearns, Bank of America Securities, Bank of New York, Citigroup, Credit Suisse, Deutsche Bank Securities, Merrill Lynch, Pierce, Fenner & Smith, UBS Financial Services, and others. Certain shareholders of the co have joined OSTK in the suit. The suit alleges that the defendants, who control over 80% of the prime brokerage market, 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." The suit also alleges that the defendants' actions caused and continue to cause dramatic distortions with regard to the nature and amount of trading in the co's stock which have caused the share price of the co's stock to dramatically drop. The suit also alleges that the defendants' actions caused and continue to cause dramatic distortions with regard to the nature and amount of trading in the co's stock which have caused the share price of the co's stock to dramatically drop. The company is seeking damages of $3.48 billion. |
