Goldman Sachs Group persuaded a judge to dismiss Overstock.com Inc. lawsuit alleging the investment bank manipulated short sales of the online retailer’s stock from 2005 to 2007, causing the shares to fall, according to Bloomberg people.
State court judge John Munter in San Francisco threw out the complaint in a ruling yesterday. The decision comes almost five years after Overstock.com accused Wall Street brokerages of using a practice known as naked short selling to deliberately drive down its shares to allegedly reap security lending fees and appease hedge fund clients who were shorting Overstock.com.
Munter agreed with the defendants, which included Merrill Lynch & Co., that the lawsuit couldn’t go forward because Overstock.com hadn’t shown that any of the conduct it sued over happened in California….
Read all about it at http://www.bloomberg.com/news/2012-01-11/goldman-sachs-wins-dismissal-of-overstock-s-short-sale-suit-1-.html
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