Post by cmkxpayoutdue on Mar 1, 2006 17:33:30 GMT -4
Calif. Judge allows Overstock case to proceed
Wed Mar 1, 2006 4:13 PM ET
NEW YORK, March 1 (Reuters) - A California judge issued a tentative ruling that allows online retailer Overstock.com Inc.'s (OSTK.O: Quote, Profile, Research) lawsuit accusing research firm Gradient Analytics Inc. of conspiring with short-sellers to proceed.
Judge Vernon Smith of Marin County Superior Court, who ruled on the matter on Tuesday and heard oral arguments on Wednesday, will issue a final decision on March 7, Gradient said in a news release.
FACT BOX
OSTK.O (Overstock.com Inc)
Last: $22.80
Change: +0.30
Up/Down: +1.33%
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Calif. Judge allows Overstock case to proceed
Overstock not behind SEC probe of journalists-CEO
UPDATE 2-Overstock to restate financial filings
Gradient had filed a motion arguing the case was eligible for dismissal under a state law aiming to stop frivolous lawsuits that stifle free speech.
After the hearing the Scottsdale, Arizona-based research firm said in a statement it will "continue to fight Overstock.com's malicious allegations and its nonstop campaign to intimidate and harass analysts and journalists who have chosen to express informed opinions and facts about a publicly traded company."
Overstock, based in Salt Lake City, Utah, filed a lawsuit in August accusing Gradient of editing research to be more negative at the behest of its client, noted short seller David Rocker of Rocker Partners LP.
The case landed on the front pages of newspapers when the U.S. Securities and Exchange Commission subpoenaed several journalists' notes as part of the government's investigation into the allegations that Gradient worked with hedge funds to drive down share prices.
Canadian drug company Biovail Corp. (BVF.TO: Quote, Profile, Research) (BVF.N: Quote, Profile, Research) also filed a lawsuit on Feb. 22 in New Jersey accusing Gradient and its predecessor Camelback Research Alliance Inc. of distributing negative research reports containing information obtained from hedge fund SAC Capital Management.
Short-sellers profit when a stock price declines. They borrow shares and sell them, hoping to buy them back later for less.
yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060301:MTFH77090_2006-03-01_21-13-59_N01392780&symbol=OSTK.O
Wed Mar 1, 2006 4:13 PM ET
NEW YORK, March 1 (Reuters) - A California judge issued a tentative ruling that allows online retailer Overstock.com Inc.'s (OSTK.O: Quote, Profile, Research) lawsuit accusing research firm Gradient Analytics Inc. of conspiring with short-sellers to proceed.
Judge Vernon Smith of Marin County Superior Court, who ruled on the matter on Tuesday and heard oral arguments on Wednesday, will issue a final decision on March 7, Gradient said in a news release.
FACT BOX
OSTK.O (Overstock.com Inc)
Last: $22.80
Change: +0.30
Up/Down: +1.33%
MarJunSepDec
Quote
Full Chart
Company Profile
Analyst Research
News for OSTK.O
Calif. Judge allows Overstock case to proceed
Overstock not behind SEC probe of journalists-CEO
UPDATE 2-Overstock to restate financial filings
Gradient had filed a motion arguing the case was eligible for dismissal under a state law aiming to stop frivolous lawsuits that stifle free speech.
After the hearing the Scottsdale, Arizona-based research firm said in a statement it will "continue to fight Overstock.com's malicious allegations and its nonstop campaign to intimidate and harass analysts and journalists who have chosen to express informed opinions and facts about a publicly traded company."
Overstock, based in Salt Lake City, Utah, filed a lawsuit in August accusing Gradient of editing research to be more negative at the behest of its client, noted short seller David Rocker of Rocker Partners LP.
The case landed on the front pages of newspapers when the U.S. Securities and Exchange Commission subpoenaed several journalists' notes as part of the government's investigation into the allegations that Gradient worked with hedge funds to drive down share prices.
Canadian drug company Biovail Corp. (BVF.TO: Quote, Profile, Research) (BVF.N: Quote, Profile, Research) also filed a lawsuit on Feb. 22 in New Jersey accusing Gradient and its predecessor Camelback Research Alliance Inc. of distributing negative research reports containing information obtained from hedge fund SAC Capital Management.
Short-sellers profit when a stock price declines. They borrow shares and sell them, hoping to buy them back later for less.
yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060301:MTFH77090_2006-03-01_21-13-59_N01392780&symbol=OSTK.O