Byrne Takes a Counterpunch
Overstock.com's crusade against short sales, spearheaded by CEO Patrick Byrne, will take a serious turn this week. Overstock has been suing Gradient Analytics for allegedly conspiring to drive its stock price down (See my 22 September entry A "Victory" for Overstock.com.) as well as pursuing a separate suit against virtually every major brokerage. Beyond avoiding dismissal, Overstock has seen little success, and the SEC closed its investigation of Gradient over a year ago. Now Gradient is going to countersue Overstock and Byrne for defamation. Since damages are tough to get in such cases, I suspect Gradient is really angling for an injunction to shut Byrne up. Yeah, good luck with that.
As I've said before, the "Litigation Road to Success" business model is at best highly questionable and should be avoided (Ask Darl McBride.). If your company is bleeding cash, your time is better spent fixing your company, not riding off on crusades.