Online retail merchandiser and early Bitcoin adopter Overstock has filed for the dismissal of a case that accuses the corporate of misrepresenting the character of its digital dividend token.
News of the dividend elicited a share value surge and the lead complainant accuses Overstock of deliberately withholding info concerning the distribution, and of deceiving the market to deliberately penalise quick sellers.
Overstocks digital dividend distribution is about to happen on May 19.
Overstock rejects manipulation accusations
For its half, Overstock argues the lead complainant inside the case, The Mangrove Partners Master Fund is a well-known short-seller, regardless of claiming to be an institutional investor.
In reality, Plaintiff concedes that the affect was extensively recognized and according from day one. This alone warrants dismissal,” the agency provides.
Overstock accused of market manipulation
The consolidated washup suit additionally accuses Overstock, ex-CEO and founder Patrick Byrne, former CFO Gregory Iverson, and present retail president David Nielson of violating securities legal guidelines amid Byrnes unexpected departure from the corporate and the liquidation of 20% of his Overstock shares final 12 months.
The washup suit claims that Overstock issued deceptive year-end predictions in regards to the profitableness of its safety token trade tZERO to drive up the value of OSTK shares permitting Byrne to money out at a premium.
On prime of the bullish fervor encompassing tZERO, information of the digital dividend drove the value of OSTK up over 97% throughout September leading to over $90 million in income to Byrne, the washup suit alleges.
Overstock later conceded that its earlier year-end steering was inaccurate, culminating in a collection of OSTK value crashes.