Overstock Accuses Goldman, Merrill Of Short Sale Plot

Law360, New York (December 17, 2010, 2:22 PM EST) -- Overstock.com Inc. is seeking to amend its market manipulation lawsuit against Merrill Lynch & Co. Inc. and Goldman Sachs Group Inc. to include racketeering claims alleging they conspired to short-sell the online retailer's securities.

The company filed a motion Wednesday asking the California Superior Court in San Francisco for permission to add Racketeer Influenced and Corrupt Organizations Act claims under New Jersey law to the suit.

The suit accuses the defendants of manipulating the stock market by executing short sales of Overstock shares with no intention...
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