Overstock.com (OSTK) Lower After Disclosing SEC Investigation

Overstock.com (NASDAQ: OSTK) is down in pre-open trade after the company disclosed an SEC investigation in its Private Placement Offering Memorandum for tZero.

From the filing:

In February 2018, the Division of Enforcement of the SEC informed the Company that it is conducting an investigation in the matter Re: Overstock.com, Inc. (NY-9777) and requested that the Company voluntarily provide certain documents related to the Offering and the Tokens in connection with its investigation. The Company is in the process of responding to this document request and will cooperate with the SEC in connection with its investigation.

While the SEC is trying to determine whether there have been any violations of the federal securities laws, the investigation does not mean that the SEC has concluded that anyone has violated the law. Also, the investigation does not mean that the SEC has a negative opinion of any person, entity, or security.

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