A brand new criticism filed in Utah accuses Overstock.com, former CEO Patrick Byrne and former CFO Greg Iverson of securities fraud.
Filed on Friday, Sept. 27, the complaint requests a trial by jury, alleging that Byrne designed Overstock.com’s digital asset-based dividend as a way of punishing brief sellers, which different retailers have alleged beforehand. On the topic, and in language extra dramatic than many authorized filings, the criticism reads:
“Whereas defendant Byrne had beforehand, at completely different occasions, launched into public tirades over brief promoting and bare brief promoting, the tZERO Dividend was his secret plot to lastly get hold of hegemony over them — and it nearly labored.”
Punishing brief sellers
In July, Overstock.com started providing a particular dividend known as “Digital Voting Sequence A-1 Most popular Inventory,” which might commerce on the corporate’s personal blockchain platform. Nevertheless, and unusually, buyers wouldn’t be capable to commerce the dividend in any respect for six months. The…