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Showing posts from November, 2012

Judge Orders Overstock.com to Produce Evidence in California Consumer Fraud Lawsuit, While Major Investor Unloads Shares

A new development recently emerged in the consumer fraud lawsuit that seven California district attorneys have filed against Overstock.com (NASDAQ: OSTK) which raises a significant question for Overstock shareholders: What is the company trying to hide?

For the second time in the last two years, Overstock.com has “refused” to turn over crucial information about potential witnesses to the prosecutors, according to recent court filings. Judge Wynne Carvill had to issue a court order compelling Overstock.com to turn over such information, as Judge Robert B. Freeman had done in a previous court ruling.

The District Attorneys are seeking at least $15 million of restitution, fines, penalties, and cost reimbursements from Overstock.com. Evidently Overstock feels that the information it has withheld, which it must now disclose, will help the DAs in achieving that goal.

Judge compels Overstock.com to produce documents

In the lawsuit, filed in November 2010, the California DAs alleged that “Ove…