Online retailer Overstock is facing a lawsuit from shareholder John Murphy over former CEO Patrick Byrne's abrupt departure from the company and off-loading of $90 million worth of shares.

According to Law360 on March 11, Potato is seeking records under Section 220 of Delaware General Corporation Law to examine potential violations of duty on the role of Overstock's directors in connection with Byrne'southward actions. The conform states:

"This activity seeks corporate books and records to investigate Byrne'due south and the lath's function in what appears to be a scheme to crusade a then-called 'brusk squeeze,' resulting in Byrne's sudden resignation from the visitor and sale of over $90 meg of his stock."

Patrick Byrne resigns, sells 5 one thousand thousand OSTK shares, flees to Indonesia

In Baronial 2022, Patrick Byrne suddenly resigned from his role as the e-commerce visitor'south CEO. The deviation came 10 days after Byrne made obscure comments regarding his role in assisting the "deep state." In a statement published to Overstock's website, Byrne said:

"Starting in 2022 I (operating under the conventionalities that I was helping legitimate law enforcement efforts) assisted in what are at present known every bit the 'Clinton Investigation' and the 'Russian Investigation' (in fact, I am the notorious 'missing Chapter 1' of the Russian investigation)."

On Sep eighteen, 2022, Byrne published a filing revealing that he had sold his entire stake in Overstock — 5 one thousand thousand shares worth approximately $ninety 1000000, equating to 13% of all OSTK stock.

Shortly afterward, Byrne blogged that he was in Indonesia, emphasizing that jurisdiction comprises "a state without an extradition treaty with the U.s.a.."

Byrne also indicated that he would be shoveling the money earned through selling his stock into "investments that are counter-cyclical to the economy: Gilt, silvery, and 2 flavors of crypto."

Overstock directors defendant of profitable Byrne

The action accuses Byrne of having "engaged in a series of improper and potentially illegal actions while in the process cashing out over $xc million dollars in stock and fleeing the country."

Farther, the suit suggests that Overstock's board may take assisted Byrne in allowing the sudden get out and subsequent stock dump to happen.

White potato besides contends that Byrne'southward "evident psychological instability" harmed Overstock's reputation, and damaged the company'southward share value.

"His misconduct not just triggered an investigation by, among others, the U.S. Securities and Substitution Commission, information technology contributed to the devastation of hundreds of millions of dollars of the company's value," the accommodate states.

The action besides seeks documents pertaining to Overstock's security token exchange, Tzero.