OverStock.com and executives are sued for alleged securities fraud

On September 28, the Federal Court of Utah in the United States filed two federal securities fraud suits against Overstock.com, Gregory Iverson, and Patrick Byrne. Previously, Gregory Iverson resigned as Chief Financial Officer of Overstock on September 17, and Patrick Byrne resigned as CEO on August 22. The lawsuit alleged that Byrne's punitive short-squeeze strategy undermined investors, flawed encryption strategies and "strange" CEO statements led to a fall in stock prices.