Skip to main content

Posts

Showing posts from February, 2008

Overstock.com and Patrick Byrne: Phony Accounting and False and Misleading Disclosures - Revenues

In a previous blog post entitled, "Overstock.com and Patrick Byrne: Phony Accounting and False and Misleading Disclosures," I detailed how the Securities and Exchange Commission found that Overstock.com (NASDAQ: OSTK) had neglected to report its revenues in compliance with GAAP since its very first filings more than five years ago. In addition, in that blog post and two other previous blog posts (link here and here), I detailed how Overstock.com violated Securities and Exchange Commission Regulation G that governs the disclosure of non-GAAP financial measures. These two observations illustrate how Overstock.com continually cherry picks information it deems most favorable to the company, while omitting material disclosures that are important to investors. That would appear to be the primary reason that Overstock.com can't seem to keep its books in order.Once again, Overstock has proved to be the story that keeps on giving. Every time I try to find the answer to one simple…

Did Overstock.com's recent press release about Gradient violate Rule 10b-5?

On Tuesday, February 12, 2008 Overstock.com (NASDAQ: OSTK) issued a press release entitled, "Overstock Applauds Trial Court's Ruling in Gradient Case; Gradient Defendant Loses Dash for Exit as Court Sets September 9 Trial Date," hyping its litigation prospects in its ongoing lawsuit against Gradient Analytics, an independent research firm and Copper River Partners (formerly Rocker Partners), a short seller. However, Overstock.com failed to disclose in its press release the fact that Gradient Analytics recently filed a Motion for Leave to File a Cross-complaint against Overstock.com, Patrick Byrne, and others.On Wednesday, the day after Overstock.com's press release, above, the company's stock rose to $11.58 per share from the previous closing price of $11.07 per share or a 4.6% increase (before the issuance of the press release). Did Overstock.com violate Securities and Exchange Commission Rule 10b-5?Let's review Securities and Exchange Commission Rule 10b-5:…

Overstock.com and Patrick Byrne: Phony Accounting and False and Misleading Disclosures

There is no end in site to the lies, distortions, deceptions, and false and misleading disclosures by Overstock.com's (NASDAQ: OSTK) management team, and in particular, its CEO Patrick Byrne. Demonstrating the level of desperation in Salt Lake City, the Overstock black ops team was set into high gear by mid-January. Early last week, the company's resident cyber stalker, Judd Bagley, attempted to smear me, in an effort to distract attention from Overstock.com's poor performance and accounting irregularities. You can read about that episode in investigative reporter Gary Weiss's blog post entitled, "Anatomy of an Overstock.com Smear" and in noted forensic accountant Tracy Coenen's blog post entitled, "Overstock "executive" playing on the internet again."I believe that I present a problem for Patrick Byrne and Overstock.com because I began asking difficult questions right about the time that Byrne was touting his phony "turnaround&qu…