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SOURCE Overstock.com, Inc.
SALT LAKE CITY, Jan. 17, 2014 /PRNewswire/ -- Overstock.com, Inc. (NASDAQ: OSTK) announced that a district court in Salt Lake City, Utah ruled in Overstock.com's favor, denying breach of contract and other claims for damages of $1.7 million.
In Haddadin v. Overstock, two brothers asserted they were entitled to damages of $1.7 million, plus future royalties, when the company contracted with Ed and Ayman Haddadin for the creation of an auto sales store on the popular e-tailer's website.
In finding for the company, the judge ruled from the bench at the close of the case, noting that elements of the Haddadin's testimony were simply "not credible."
"We applaud the judge in this case for understanding and ruling upon the facts," said Overstock.com CEO and Chairman Patrick M. Byrne. "Overstock will always fight unmeritorious lawsuits."
Under the 2006 contract, Overstock.com purchased a software platform from the Haddadins, together with consulting services to support the auto store component of the site. The Haddadins were to assist in the creation of a dealer subscription auto listing service to populate the site with a nationwide auto inventory.
The platform and business model was not successful, and the company created a different system using an alternate vendor and business model. Two years later, the Haddadins claimed entitlement to royalties under the original contract. The judge in the case ruled the evidence didn't support their claims to entitlement to royalties on any system, regardless of who supplied it.
Overstock.com (NASDAQ: OSTK) is a discount online shopping retailer based in Salt Lake City, Utah that sells a broad range of products including furniture, rugs, bedding, electronics, clothing, jewelry and cars. Worldstock.com, a fair trade department dedicated to selling artisan-crafted products from around the world offers additional unique items. Main Street Revolution supports small businesses across the United States by providing them a national customer base. The Nielsen State of the Media: Consumer Usage Report placed Overstock.com among the top five most visited mass merchandiser websites in 2011. The NRF Foundation/American Express 2011 Customer Choice Awards ranked Overstock.com #4 in customer service among all U.S. retailers. Overstock.com sells internationally under the name O.co. Overstock Shopping (http://www.overstock.com and http://www.o.co) regularly posts information about the company and other related matters under Investor Relations on its website.
Overstock.com®, O.co®, Worldstock Fair Trade® and Club O Rewards® are registered trademarks of Overstock.com, Inc. O.info™, Club O™, Club O Dollars™ and Your Savings Engine™ are trademarks of Overstock.com, Inc. All other trademarks are the property of their respective owners.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, statements regarding this lawsuit and future suits. Additional information regarding factors that could materially affect results and the accuracy of the forward-looking statements contained herein may be found in the Company's Form 10-Q for the quarter ended September 30, 2013 which was filed with the SEC on October 24, 2013, and any subsequent filings with the SEC.
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