A federal lawsuit accuses Utah-based Overstock.com, its controversial ex-CEO Patrick Byrne and another departing executive of securities fraud tied to Byrne’s recent sale of over $102 million in company stock.
The class-action suit accuses Byrne, the online discount retail company he led until August and the firm’s former Chief Financial Officer Gregory Iverson of making false, misleading and “bizarre” statements and concealing information in a way that artificially inflated Overstock’s share prices prior to a series of sales that culminated in mid-September.
The suit’s two complaints, filed late Friday by San Jose, Calif.