DJ Copper River Files Countersuit Vs Overstock, CEO, Directors
News for 'OSTK' - (=DJ Copper River Files Countersuit Vs Overstock, CEO, Directors)
By Carol S. Remond
Of DOW JONES NEWSWIRES
More than two years after being accused of manipulating Overstock.com Inc.'s (OSTK) share price, Copper River Partners LP is suing the online retailer; its chief executive, Patrick Byrne; and some of its directors.
In a countercomplaint filed Friday in California Superior Court in Marin County, Copper River alleges that Overstock and Byrne made false statements and projections to boost the company's stock price and launched a campaign to intimidate critics, including members of the press and research firms.
The fund is seeking damages for false statements in connection with Overstock's securities, stock price manipulation and unfair business practices.
Overstock sued Rocker Partners LLC, now renamed Copper River, and Gradient Analytics Inc. in August 2005, alleging that the short-selling fund and research firm engaged in unfair practices and conspired to produce negative reports to depress its stock price for profit.
Copper River and Gradient have denied wrongdoing, claiming that Byrne is attempting to silence critics. They both tried to have the case dismissed.
Copper River is represented in California by David Shapiro and Fred Norton of Boies, Schiller & Flexner LLP.
According to Copper River's countersuit, Overstock and Byrne, "with the active and knowing participation, approval and ratification of the company's board of directors, have made false claims that the company was profitable when it was not; false projections that it would become profitable when it could not; baseless projections of future revenues that were not obtained; false statements that the company did not require additional capital; false predictions of success of new business ventures; and misleading mischaracterizations of the operation of the company's business and of its business prospects."
Copper River, which began shorting Overstock's stock in February 2004, claims in its complaint that it lost millions because of the artificial rise in the company's stock and ensuing short squeeze.
Short sellers bet on falling stock prices. They typically borrow shares to sell them, hoping that they will be able to replace them with stock bought at a lower price later.
Copper River's counterclaim also names Patrick Byrne's father, John Byrne Jr.; Allison Abraham; John Fisher; and Jason Lindsey.
-By Carol S. Remond, Dow Jones Newswires; 303-997- 5783; carol.remond@dowjones.com
(END) Dow Jones Newswires
November 09, 2007 18:31 ET (23:31 GMT) |
