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SALT LAKE CITY,
March 8, 2012 /PRNewswire/ -- Overstock.com, (NASDAQ: OSTK) today announced that in its stock manipulation suit against Goldman Sachs and Merrill Lynch the court denied mostly all of defendants' motion to seal the evidentiary record on the summary judgment hearing. The ruling is significant because the evidence submitted to the court lays out in detail the means by which Goldman Sachs and Merrill Lynch used naked short selling, in concert with others, to manipulate downward Overstock.com's share price.
"We are thrilled," said
Patrick Byrne, chairman and ceo of Overstock.com. "I could not imagine that a post-2008 public would be denied access to this evidence, which displays in living color the flaws in our capital markets and in the regulatory structure that governs them. Now the public will have a window through which to view this evidence and judge for itself the fraudulent and systemically risky behavior at issue in this case."
Jonathan Johnson, president of Overstock.com, said, "On the one hand, defendants have gone overboard to keep this evidence locked away from public view, while on the other they maintained that the conduct is perfectly legal. We believe it's not legal, and that the public has an independent right to make that determination, based on the evidence."
Four major media groups, The Economist, The
New York Times, Rolling Stone Magazine and Bloomberg News intervened in the case and joined Overstock.com in opposing Goldman and Merrill's motion to seal the evidence.
Overstock.com officials acknowledged that Goldman and Merrill will likely appeal to try to keep the evidence sealed, but expressed confidence in the correctness of the court's ruling and that the decision will be upheld on appeal.