Howard B. Sirota Law Blog

Overstock.com was sued on November 17, 2010 by seven California District Attorneys for systematically misleading consumers by overstating its claimed discounts for products on its website.  According to the lawsuit, "Overstock's untrue and misleading representations accompanied virtually every product listing on it site beginning no later than January 1, 2006."  Overstock.com has acknowledged that the timing of the filing of the lawsuit appears "strategically-timed"... Read More

The Dodd-Frank Act, enacted July 21, 2010, contains provisions establishing financial incentives for whistleblowers who provide the SEC with original information conserning securities fraud leading to an SEC recovery above $1 million.  An SEC whistleblower is entitled to an award of 10% to 30% of the SEC recovery above $1 million, and is specifically protected against retaliation.  The SEC is promulgating rules and regulations, establishing a separate Office to screen and evaluate w... Read More

The SEC action charging Goldman Sachs signals there's a new Sheriff in town, Rick Simpson, and that there are no more "Sacred Cows" on Wall Street anymore.  In the end, however, Goldman will survive the scandal with a payment it can well afford to pay and a consent decree in which it neither admits nor denies the truth of the allegations.  ... Read More

"Circle of Greed" is a must-read new book for lawyers and judges profiling Bill Lerach which, while well-written and accurate as far as it goes, stops before the story gets really interesting.  Bill Lerach isn't "ratting out" anyone, and the authors' focus on Lerach as an individual blurs the focus upon the larger context of Milberg Weiss' shockingly large assembly of crooked lawyers, many of whom have never been charged.... Read More

Overstock.com faces serious litigation risk from the expanded SEC inquiry and may not be able to issue 2008-2009 restated audited financial statements in time to avoid delisting from NASDAQ.... Read More

Securities industry automation has, whether intended or not, eliminated public investors' statutory rights under Section 11 of the Securities Act of 1933.... Read More

Overstock.com  Litigation  Analysis 2009-2010

 

Overstock.com’s pending litigation portfolio may have a material financial effect upon the Company’s financial statements for 2009-2010 with a scheduled February 9, 2010 jury trial of the claims by Overstock.com... Read More

Here are ten ways to protect public investors in America:

1. End the practice of SEC and FINRA to permit settling defendants to deny the settled allegations in subsequent civil litigation by public investor victims, thus giving the investors collateral estoppel as a matter of law. The present practice is the defendant neither admits nor denies the allegations, but is barred from denying the allegations in any forum except the one where it counts...in court. While this may... Read More

How To Avoid Stock Market FraudsStock market fraud is rampant throughout history and widespread today. There is no magic bullet to avoid becoming a victim of stock market fraud, because frauds are committed by the "brand name" investment banks and "prestigious" public companies. A number of the... Read More