Friday, December 17, 2010

Overstock Sues Goldman Sachs, Merrill Lynch Over Racketeering

Salt Lake City-based Overstock.com said Thursday night that it is suing Goldman Sachs and Bank of America Merrill Lynch, over racketeering allegations. Overstock claimed that the two engaged in "naked short selling" of its stock, which results in downward pressure on its share prices. The charges came in an amended lawsuit, originally filed in 2007, over short selling of the firm's stock. The lawsuit was filed as part of an unusually aggressive campaign against alleged short selling activity of Overstock.com stock by Overstock's CEO, Patrick Byrne, in 2006 and 2007.