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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation? -- Ignore unavailable to you. Want to Upgrade?

To: Sarmad Y. Hermiz who wrote (587)	12/23/2005 9:58:26 PM
From: sixty2nds	Read Replies (2) \| Respond to of 5034

He has filed a suit...here is a reprint of rruffs post 11/17/05 you should skim through the overstock posts on this board it is truly eye popping...From: rrufff 11/17/2005 4:45:32 PM of 587 Update on Overstock former CEO Byrne's war against hedge fund manipulation. Basically hedge fund claims that its alleged manipulation, getting advance negative articles for trading before they are released to the public and despite apparently improper relationships between the author and the hedgie, that this is somehow protected speech. LOL Rocker Partners, Gradient Move To Strike Overstock Suit By Carol S. Remond Of DOW JONES NEWSWIRES 16 November 2005 NEW YORK (Dow Jones)--Hedge fund Rocker Partners L.P asked a California judge Tuesday to throw out a suit accusing it of conspiring with a research firm to drive down the stock price of Internet retailer Overstock.com (OSTK). Salt Lake City-based Overstock.com sued Rocker Partners, its managers and research firm Gradient Analytics Inc. and its officers in August, alleging that they all conspired to denigrate the company's business for profit. The suit was filed in the Superior Court of the State of California in Marin County. In a motion filed in answer to Overstock.com's claim, Rocker Partners said that the company's suit is an attempt to "chill others from exercising their rights of free speech" and asked the judge to strike the complaint. Also on Tuesday, Gradient Analytics filed its own motion asking for the dismissal of Overstock's claims. Both Rocker Partners' and Gradient Analytics' motions to strike were filed under California's anti-SLAPP statute, or Strategic Lawsuit Against Public Participation statute. "Gradient's reports constitute First Amendment protected speech, and are therefore squarely covered by" the Anti-SLAPP statute, the research firm said in a press release. Overstock.com has until Dec. 1 to respond to the motions to strike. Under California law, if a defendant that filed a SLAPP motion is able to convince the court that its actions were taken in furtherance of its rights to free speech, the burden shifts onto the plaintiff, which must demonstrate that its case has merits. Overstock.com alleged in its suit that Rocker Partners, a hedge fund which often takes bets that stock prices will go down, engaged in unfair practices and colluded with Gradient Analytics to produce negative reports with the aim of pressuring Overstock.com's stock price to profit. Short sellers typically borrow securities and sell them in anticipation that prices will fall and that they will be able to buy back the stock at a lower level. In a press conference to announce the suit in August, Overstock.com's president Patrick Byrne alleged that Rocker Partners and other hedge funds, in cahoots with financial reporters, are working with a nefarious business figure, which Byrne dubbed the Sith Lord, to weaken his company. Following that conference call, Byrne circulated to various media outfits three affidavits by former Gradient employees alleging improper relationships between Rocker Partners and the research firm. The affidavits are posted on Overstock.com's Web site but were not filed in court with the company's complaint and amended complaint. Rocker Partners and Gradient Analytics have denied any wrongdoing and said they would file countersuits against Overstock.com. Illegal short selling isn't alleged in Overstock.com's case against Rocker Partners and Gradient Analytics. But Overstock.com president Byrne has been very vocal in claiming that his company's stock has been pressured by illegal short selling, dubbed naked short selling, or selling short without first borrowing stock as typically required. Earlier this year, Byrne largely financed an advertisement in the Washington Post to raise awareness about the evils of illegal short selling. Byrne also financed an infomercial to denounce the practice. Mary Helburn, one of two former shareholders who joined Overstock.com in its complaint against Rocker Partners and Gradient Analytics, is the executive director of the National Coalition Against Naked Shorting or NCANS, an organization alleging a massive short selling conspiracy on Wall Street. Byrne has said he has been a major contributor to NCANS. The other complainant in the case against Rocker Partners and Gradient Analytics is Hugh D. Barron. Barron is listed as Latin American sales agent for Centricut LLC on that company's Web site. Byrne was chairman, president and chief executive of Centricut from 1995 to 1999. The defendants in the complaint filed by Overstock.com are: Rocker Management LLC, Rocker Partners LP, Rocker Offshore Management Co. Inc., David Rocker, Marc Cohodes, Gradient Analytics Inc., James Carr Bettis, Donn Vickrey, and Matthew Kliber.

To: Sarmad Y. Hermiz who wrote (587)	12/24/2005 9:50:22 AM
From: rrufff	Read Replies (1) \| Respond to of 5034

Actually, that is an interesting concept. The Byrne action is a claim against Rocker and related parties for manipulation and related claims. An action against one's broker might lie as they have a duty to deliver shares paid for in the ordinary course of the business. Might be an interesting question to post on the NCANS board or bob O'brien's blog. There have been a number of cases, mostly unsuccessful, relating to actions against brokers but I don't think any of them asked for specific performance by delivery of certificates. Most seemed to be for damages or some type of manipulation theory. Again - interesting thought. Maybe it can lead somewhere.