Overstock, Short Sellers Battle at 10th Cir. Over Dividend Drama

Short sellers allegedly harmed by Overstock.com Inc.'s controversial plan to offer an unregistered dividend in digital form told the Tenth Circuit on Thursday that their suit should be revived on evidence of intentional market manipulation.

But the short sellers never alleged they were actually deceived, Overstock told the appellate panel at oral argument. And the purpose of the digital dividend was to benefit the company, the retailer said.

Judges Carlos F. Lucero, Joel M. Carson, and Veronica S. Rossman explored the dividend aspect of the case as well as allegations that Overstock misled investors in guidance about its financial performance. ...