Overstock.com Announces Court Ruling Denying RICO Amended Complaint

Overstock.com, OSTK today announced that the court in its prime broker lawsuit denied the company the right to file an amended complaint to include a claim under New Jersey's Racketeering Influence and Corrupt Organization Act. Overstock.com began the process to amend to include the New Jersey RICO claim in December 2010, citing evidence newly obtained from Goldman Sachs and Merrill Lynch entities that tied them to New Jersey trading in a massive manipulation scheme of Overstock.com's share price. In May 2011, the court disallowed the amendment, stating that the amended complaint needed more specific facts on the new RICO claim. The court then allowed Overstock.com two weeks to submit a proposed amendment with more specificity on the RICO conspiracy. Despite meeting the court's deadline and supplying a wealth of detailed and conspiratorial facts, the court yesterday ruled that it is too close to trial and it would be unfair for Goldman Sachs and Merrill Lynch to have to defend the new RICO claim, and that conflict of law principals disallowed the trial of the New Jersey RICO claims in California courts.