Enter multiple symbols separated by commas

Overstock.com Sues 10 Major Brokerages for Stock Manipulation

Overstock.com on Friday said it sued at least 10 major U.S. brokerages, seeking $3.48 billion in damages for what it called their deliberate attempt to drive the online retailer's stock price down.

The defendants include U.S. units of Bank of America, Bank of New York, Bear Stearns, Citigroup, Credit Suisse Group,Deutsche Bank, Goldman Sachs Group, Merrill Lynch, Morgan Stanley and UBS, among others, Overstock said.

Overstock said the defendants, whom it said control more than 80% of the prime brokerage market, conspired to manipulate its stock, and had no intention to cover orders with borrowed stock, creating "fails." It said a large number of fails caused downward pressure on Overstock's share price.

The lawsuit was filed with the Superior Court of California in San Francisco, Overstock said. A copy of the complaint was not immediately available.


Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Lottery ticket

    A thief who broke into the car of a Seattle couple left behind a million-dollar lottery ticket, NBC News reports.

  • The Lamborghini SpA Urus SUV.

    There's no shortage of luxury vehicle choices, but increasingly the wealthy are opting for high-end SUVs instead of traditional models.

  • Mike Trout #27 of the Los Angeles Angels takes a picture with fans before a game with Boston Red Sox at Fenway Park on May 23, 2015 in Boston, Massachusetts.

    MLB is using digital media initiatives like Snapchat and Web video to connect with younger viewers. Is it enough?

U.S. Video

  • Cramer: Here's the no. 1 play in cybersecurity

    Guarding Your Portfolio? "Mad Money" host Jim Cramer's got the number one pick for protection services in today's digital world.

  • Underestimate Cisco at own peril: Cramer

    Mad Money's Jim Cramer takes a look at the cybersecurity space to see if it could also protect your money.

  • Fly with LUV?

    While remaining profitable, Gary Kelly, Southwest Airlines chairman and CEO, tells Mad Money's Jim Cramer the company continues to focus on being a great airline and offering great customer service.