Overstock.com announced today the SEC’s Salt Lake Regional Office notified the company by letter that it has closed its 2009 investigation of Overstock.com and it does not intend to recommend to the Commission any enforcement action against the company.
Overstock.com became aware of the investigation in September 2009 when it received a subpoena from the Salt Lake Regional Office of the SEC following Overstock.com’s disclosure of restatements of certain of its financial statements.
“Our persistent detractors made much of this investigation,” said Patrick Byrne, Overstock.com chairman and CEO. “We have silently shouldered this weight for two-and-a-half years with apparently no one recalling that it was only an investigation with no accusation of wrongdoing. Lost in the smoke of the relentless ‘spin’ from the hedge fund toadies was the fact that we are the ones who brought all these matters to light, we made the corrections, we fully disclosed these matters, and from the outset were confident that an investigation would not discover actionable conduct. Thus, we are pleased with this result.”
The September 2009 subpoena covered documents related to the company’s 2006 and 2008 restatements, the company’s billings to its partners in the fourth quarter of 2008 and related collections, and the company’s accounting for and implementation of software relating to its accounting for customer refunds and credits, including offsets to partners, and related matters.