One of Overstock.com’s outside directors resigns over brokerage lawsuit
One of Overstock.com Inc.’s outside directors, Ray J. Groves, has resigned from the board of directors over the suit that Overstock filed in February alleging stock price manipulation by several big brokerage companies.
In its suit, Overstock claims that the brokerage companies, including the biggest names on Wall Street, “participated in a massive, illegal stock market manipulation scheme” that resulted in creating a false picture of the volatility of Overstock’s stock and that resulted in depressing the price of the stock. The suit seeks $3.48 billion in damages.
Overstock says that Groves’ resignation reduces the number of outside directors as required by NASDAQ rules, a situation it hope to remedy within NASDAQ’s required time frame.
Groves was with Ernst & Young for 37 years serving as chairman and CEO for 17 years until his retirement in 1994. He was chairman of Legg Mason Merchant Banking Inc. from 1995 to 2001. He was president & chairman of Marsh Inc. from 2001 to 2005.
Overstock.com is No. 25 in the Internet Retailer Top 500 Guide.
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