Rocker Fires Back at Overstock

Updated from 12:12 p.m. EDT

The sparring continued Thursday between Overstock.com(OSTK Quote) and the New York hedge fund it accused of illegally conspiring to drive down its shares.

In a statement, Rocker Partners said it plans to countersue Overstock, alleging that recent media appearances by Chief Executive Patrick Byrne amount to a "smear campaign" that potentially injured Rocker's business reputation.

"We believe that by failing to rein in the erratic behavior of Overstock's CEO and tacitly endorsing both his frivolous lawsuit and his increasingly outlandish public attacks on the Rocker parties, the board should be held accountable for the consequences of Dr. Byrne's actions, and we plan to make the board answer for its conduct in court," the hedge fund said in a release. ...