Overstock Beats Short Seller-Led Lawsuit on Digital Dividend

Sept. 29, 2020, 7:33 PM

Overstock.com Inc. is free of a would-be class suit over alleged problems with its 2019 financial projections and plan to issue a digital dividend after a federal judge in Utah dismissed the case.

The online retailer’s investors didn’t properly allege that Overstock materially misled them about its finances or the purpose of the dividend, Judge Dale A. Kimball ruled Monday in rejecting a suit he said was led by a “well-known short seller.”

The investors’ “heavy reliance on the fact that Overstock ultimately missed its guidance is a classic attempt to plead fraud by hindsight,” the opinion from the U.S. ...

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