SALT LAKE CITY, Jan. 13 /PRNewswire-FirstCall/ -- Overstock.com, Inc. comments on a trial court ruling upholding a controversial New York statute imposing tax collection responsibilities on out-of-state internet retailers. Overstock.com filed suit challenging the law, citing U.S. Supreme court cases supporting Overstock's position that the law violated both the Commerce and Due Process Clauses of the U.S. Constitution.
"We don't believe the New York court correctly applied the law, and we must now move this challenge to the next phase," said Jonathan E. Johnson, President of Overstock.com. Johnson added, noting that the company was disappointed but not surprised by the trial court ruling: "It now seems to be a question best answered by the New York Court of Appeals, or, if necessary, the United States Supreme Court. Confident of a ruling in our favor, that's exactly where we are going next."
Before the law went effective on June 1, 2008, Overstock.com notified more than 3,400 New York based independent advertisers that because of the law, it could no longer engage the services of New York based internet advertising firms.
Patrick Byrne, Overstock.com chairman and chief executive officer said, "We love New York, and we also think New York has some fine internet advertisers, but we think this new tax law is a mistake, is constitutionally out-of-bounds, and we will pursue the issue to the next level where we expect to prevail."
About Overstock.com
Overstock.com, Inc. is an online retailer offering brand-name merchandise at discount prices. The company offers its customers an opportunity to shop for bargains conveniently, while offering its suppliers an alternative inventory distribution channel. Overstock.com, headquartered in Salt Lake City, is a publicly traded company listed on the NASDAQ Global Market System and can be found online at http://www.overstock.com/. Overstock.com regularly posts information about the company and other related matters on its website under the heading "Investor Relations."
Overstock.com(R) is a registered trademark of Overstock.com, Inc.
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, statements regarding a change in the New York tax law, the company's tax nexus to New York, the forecasted success of the lawsuit or appeal, comments regarding the constitutionality of the New York law, and returning to the New York-base advertising affiliates. Our Form 10-K for the year ended December 31, 2007, our subsequent quarterly reports on Form 10-Q, or any amendments thereto, and our other subsequent filings with the Securities and Exchange Commission identify important factors that could cause our actual results to differ materially from those contained in our projections, estimates or forward-looking statements.
