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Copper River Partners Settles Lawsuit with Overstock.com, Inc.

HOLMDEL, N.J., Dec. 8 /PRNewswire/ -- Copper River Partners, LP announced today that it had settled its lawsuit with Overstock.com, Inc. Copper River and its affiliated funds have paid Overstock a total of $5 million, and the Overstock lawsuit (along with Copper River's cross-claim against Patrick Byrne and Overstock) will be dismissed with prejudice.

In a detailed statement, Marc Cohodes, the Managing General Partner of Copper River, said, "We have said throughout the course of this litigation that we did not defame Overstock, nor were we responsible for the contents of reports written by Gradient Analytics. Nothing has changed - we settled the case in order to end costly and unnecessary litigation. After originally demanding $750 million and then $30 million in so-called damages, Overstock agreed to settle this case for $5 million - the cost of a trial. Although settlement deprives us of the ability to disprove Overstock's case and prosecute our counterclaims, we decided that the litigation costs did not justify passing up a practical way to end four-and-half years of meritless litigation by Overstock."

Cohodes also noted, "I have and will urge the Securities and Exchange Commission and Congress to investigate the damage done to individual investors and the market system as a whole as a result of issuer retaliation - issuers who attack critics rather than attacking the problems on their balance sheets. It is my personal opinion that our country needs more, not fewer, skeptics to turn bright lights on financial shenanigans and company weakness. Only then will we reduce the number of scandals that plague our country every few years."

"With the resolution of this lawsuit, Overstock is free to devote itself to responding to their current SEC investigation, its search for an auditor to replace Grant Thornton, the threat by the NASD to delist Overstock, the class action in New York alleging false statements about return policies, and issuing financial statements that do not have to be restated yet again. We hope that those issues are addressed thoroughly and justly," concluded Cohodes.

Boies, Schiller & Flexner LLP partners David Shapiro and Fred Norton represented Copper River Partners and negotiated the settlement.

CONTACT: David Shapiro, +1-510-874-1005/office or Fred Norton, +1-415-335-1309/cell, both of Boies, Schiller & Flexner LLP
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Publication:PR Newswire
Date:Dec 9, 2009
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