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Showing posts from January, 2014

California Judge Rules Slaps Overstock.com With a $6.8 Million Fine For Defrauding Consumers

Updated

It's now official: Overstock.com (NASDAQ: OSTK) defrauded consumers. Late Friday afternoon, a California Judge issued a tentative ruling in favor of district attorneys from eight California Counties who had sued Overstock.com for engaging in fraudulent comparative pricing practices. The Judge imposed a civil penalty in the amount of $6.819 million and approved issuance of an injunction to prevent Overstock.com from continuing its deceptive practices. To make matters worse, Overstock.com will have to reimburse the State of California possibly millions of dollars for legal fees, investigative costs, and other costs. [Download ruling.]

Overstock.com will definitely appeal the ruling, adding to its already huge legal costs, a huge lose-lose proposition for the company. For instance, last quarter the company reported a $2 million increase in legal fees resulting in large part from the "defense of a case brought by district attorneys in eight California counties."

Overs…