Cramer declines to comment about Overstock

[David Briggs]

A concluding Lightning Round caller the other day asked for Jim's opinion about Overstock.com.

Cramer's reply was something like "Every lawyer in the country has told me not to comment on Overstock. We'll be right back. Stick with Cramer."

I have never heard him give an answer like that before. I assume if he felt free to comment, he would give Overstock a sell, sell, sell or a man out the window or a train wreck. But why this "no comment?"

Jim has had Overstock's CEO on the show, and the segment seemed somewhat tension filled. The guy came across as annoyed at Cramer's questioning rather than blithely positive as most polished CEOs usually are. Could Jim Cramer actually be concerned about getting sued by Overstock if he pushes the bear button on them during the show?

[helk]

I read the following article on TheStreet.com. I'm sure this has something to do with his response:

The sparring continued Thursday between Overstock.com (OSTK:Nasdaq - news - research - Cramer's Take) and the New York hedge fund it accused of illegally conspiring to drive down its shares.

In a statement, Rocker Partners said it plans to countersue Overstock, alleging that recent media appearances by Chief Executive Patrick Byrne amount to a "smear campaign" that potentially injured Rocker's business reputation.

"We believe that by failing to rein in the erratic behavior of Overstock's CEO and tacitly endorsing both his frivolous lawsuit and his increasingly outlandish public attacks on the Rocker parties, the board should be held accountable for the consequences of Dr. Byrne's actions, and we plan to make the board answer for its conduct in court," the hedge fund said in a release.

Rocker Partners owns about 8% of TheStreet.com (TSCM:Nasdaq - news - research - Cramer's Take), the publisher of this Web site.

Jonathan Johnson, the senior vice president for corporate affairs at Overstock, said the company expected countersuits when it filed its own complaint.

"The suit we brought is meritorious and we'll win," Johnson said. "Regardless of who he countersues he'll lose."

Last week, Overstock filed a lawsuit in California accusing Rocker Partners of spearheading a campaign to drive down the company's share price by helping to promulgate tainted stock research and manipulating various press organs (including, at times, this one) and other entities. The suit named David Rocker, his fund and various employees, as well as Gradient Analytics, a research outfit Overstock implied was in league with the short-sellers.

The suit alleges unfair business practices and negligence and alleges that Gradient's research reports were "simply platforms for the Rocker defendants to pursue its investment agenda of having Overstock's share price being kept as low as possible."

In a subsequent conference call and two CNBC interviews, Byrne claimed a short-selling conspiracy had been carried out against his company at the behest of "one of the master criminals of the 1980s" who was "supposed to end up with our company." He declined to name the figure but likened him to the "Sith Lord" of Star Wars renown.

In its release Thursday, Rocker Partners called the suit frivolous.

[stockmaster8318]

The CEO of Overstock is all but legally insane. At their recent earnings conference call Byrne said there was a conspiracy theory between hedge fund managers and financial journalists headed by a "Sith Lord" who is trying to take down Overstock.com, thus the lawsuit against Rocker Partners. I swear I'm not making this up.

[deepinwonder]

I bought a windbreaker from there about a year and a half ago that was the most worthless piece of garbage I've ever seen. The material was cheap, scratchy, ugly and made a lot of noise whenever you moved. I couldn't tell from the picture and description that it was so bad, so returned it and ended up out the shipping fees both ways plus restocking fees. So much for a good deal, of course I was not pleased and did not shop there again. ;)

[axb8000]

hahahaa Overstock.com!!