Byrne’s Preferred Stake in Overstock
After bidding farewell to his role as CEO, Patrick Byrne didn’t completely sever ties with Overstock. Instead, he sits comfortably as a significant holder of Series A-1 Preferred Stock, boasting an impressive total of 63,775 shares. According to Overstock’s SEC filing on November 22, 2019, it’s evident that while Byrne may have sold his common stock, his grip on the company remains firm.
The CEO’s Controversial Exit
In August, Byrne announced his departure from the CEO position, taking the opportunity to cite his tumultuous personal life—specifically, his connection with Maria Butina—as his primary reason. For those unacquainted with the name, Butina is currently serving an 18-month term for her alleged espionage as part of Russian tactics in the U.S. political landscape. It’s one of those Hollywood plots that begs the question: Is it a thriller or a comedy?
The Great Cashout: A Bold Move
Fast forward to September, and Byrne was making headlines yet again—not for his leadership but for cashing out a whopping 4.8 million shares of Overstock (OSTK), which amounted to over 13% ownership and a staggering $90 million. For the stock market aficionados, his sales may have felt like a rollercoaster, fluctuating between $21.84 and $16.32 in just two days.
Legal Troubles Looming Over Overstock
Not only was Byrne lighting up financial news with his cashout, but a storm was brewing in Utah as well. A class-action lawsuit had surfaced, alleging Byrne, alongside Overstock and former CFO Greg Iverson, was involved in securities fraud. The complaint went so far as to accuse Byrne of engineering a digital asset-based dividend to get the upper hand on short-sellers. Talk about plotting twists—take notes, Hollywood! Here’s a juicy quote:
“While defendant Byrne had previously, at different times, launched into public tirades over short selling and naked short selling, the tZERO Dividend was his secret plot to finally obtain hegemony over them — and it almost worked.”
Emerging from Controversy: Blockchain R&D Center
Despite the swirling controversies and legal headwinds, Overstock announced a refreshing venture in October by opening a blockchain research and development center in Ireland. Nestled in Sligo’s North West business park, they aim to establish an innovative presence while hoping to hire 100 staff members by the year’s end. Who knows? Perhaps they’re looking for some cryptographic escape artists to help navigate their tumultuous waters.
Conclusion
Patrick Byrne’s saga with Overstock is a testament to the intersection of business, legal challenges, and personal drama. As the story unfolds, one can’t help but wonder: What’s next for Byrne and Overstock? Will they emerge stronger or just find themselves in deeper waters? Only time will tell!
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