Overstock class action claims the SEC blocked the firm’s digital dividend lockup
An investor has launched a class action lawsuit against Overstock and its former CEO and CFO. In the complaint the investor alleges that the defendants published “materially false and misleading statements” regarding the company’s financial state which allowed them to inflate the value of the stock. Former CEO Patrick Byrne sold all of his stock, worth over $100 million, as he left the company. The complaint also alleges that Byrne created a digital dividend with a six-month lockup in order to get revenge on short sellers who would be unable to deliver the tokens before the end of the lockup.
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