Overstock Short Sellers Lose Appeal Over Market Manipulation

Short sellers can’t continue to press their case that Overstock.com Inc. and its leaders forced them into a “squeeze” through improper tactics, the Tenth Circuit ruled Tuesday.

The suit stemmed from a bitter fight between Overstock’s leadership and investment funds betting on a loss in its share value. The short sellers, who say they were effectively forced to purchase shares in circumstances known as a short squeeze, sought to revive the case after the US District Court for the District of Utah dismissed it in 2021.

The short sellers’ claims for misrepresentations, market manipulation and insider trading all fail, a ...