Court tosses out short-sellers’ lawsuit targeting Overstock’s ‘digital dividend'
A Utah federal judge has tossed out a lawsuit that accused Overstock (NASDAQ:) ($OSTK) of market manipulation by distributing a ‘digital dividend’ of security tokens to shareholders and repeatedly revising retail earnings guidance upward to punish short-sellers.
U.S. district judge Dale Kimball granted two motions to dismiss the suit on September 28, finding that the digital dividend did not manipulate the market, and that the revised earnings statements were protected by the Private Securities Litigation Reform Act. In his judgement Kimball said:
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