Litigation

No profitability to ?maintain? at Overstock.com

By Tracy Coenen

Sam Antar pointed out this hilarious directive that Patrick Byrne and Overstock.com (NASDAQ:OSTK) received in 2002 from the SEC. (Note that the company has still never had a profitable year. Ever.)

From Overstock.com S-1 filed on 03/05/02:

“We have grown quickly and if we fail to manage our growth, our ability to generate new revenues and maintain profitability would be harmed.”

SEC to Overstock.com on 04/04/02:

Dear Mr. Byrne….

“We note that you incurred net losses of $13.8 million for your most recently completed fiscal year. In light of this fact, please revise the caption to this risk factor to eliminate the reference to ‘maintaining’ profitability.”

Yeah… Overstock and the auditors might want to be a little more accurate in their SEC filings. First a company must get to profitability. Then it can maintain it. Or in Overstock’s case, never get to it.

Full post as published by The FRAUDfiles Blog on June 02, 2008 (boomark / email).