Ruling could come soon in Overstock.com lawsuit

A California appeals court is preparing to rule in Overstock.com Inc.'s effort to keep alive a lawsuit against Gradient Analytics Inc., Overstock Chief Executive Officer Patrick Byrne said Friday.

"The appellate court has said we're ready to rule without hearing oral arguments," Byrne said in an interview.

He said Gradient, an Arizona-based research company, and hedge fund Rocker Partners LLC objected and want to make an argument.

Salt Lake-based Overstock, which sells excess inventory online, filed a lawsuit in August 2005 that accused the two companies of conspiring to issue research aimed at driving down Overstock.com shares. Both have denied wrongdoing.

Gradient, which sells research to hedge and mutual funds, said in an appeal filed in San Francisco that its reports criticizing Overstock were protected free speech.

Byrne said he needs information from Rocker and Gradient.

He said he would settle for a "fair number" with both parties.

Separately, he said that the surge in Internet shopping this year started about 10 days later than last year, which was about Nov. 5. He said the surge started off with Wal-Mart Stores Inc., Target Corp. and J.C. Penney Co.'s Web sites.

Shares of Overstock.com rose 10 cents to close at $14.51 Friday on the Nasdaq Stock Market. They have fallen 48 percent this year.

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Contributing: Matthew Sigel; Karen Gullo